5.4%
Q4 Growth (Trump claim)
52
Market Records Since Election
1.6%
Core Inflation (3-month)
72%
Global Trade Under WTO

๐ŸŒ What World Leaders Said

From confrontation to diplomacyโ€”how global leaders responded to Trump at Davos

๐Ÿ‡บ๐Ÿ‡ธ

Donald Trump

President, United States
Assertive
"We probably won't get anything unless I decide to use excessive strength and force where we would be, frankly, unstoppable. But I won't do that."
  • Demanded Greenland "right, title and ownership" but pledged no force
  • Threatened allies: "You can say yes, or you can say no and we will remember"
  • Proposed $200B mortgage bond program and 10% credit card interest rate cap
  • Claimed 5.4% GDP growth, $9T market gains
  • Cut payments to "sanctuary cities"
  • Called Europe "not recognizable anymore," mocked Macron
๐Ÿ‡ซ๐Ÿ‡ท

Emmanuel Macron

President, France
Confrontational
"We do prefer respect to bulliesโ€ฆ and we do prefer rule of law to brutality."
  • Denounced tariffs as "fundamentally unacceptable"
  • Called out tariffs as leverage against sovereignty
  • Criticized Trump's Canada "51st state" talk
  • Framed choice as "democracy vs authoritarianism"
  • Warned against "endless accumulation" of tariffs
๐Ÿ‡จ๐Ÿ‡ฆ

Mark Carney

Prime Minister, Canada
Warning
"We are in the midst of a rupture, not a transition. The old world order is not coming back."
  • "Most consequential speech" from a Canadian PM (per diplomat)
  • "If we're not at the table, we're on the menu"
  • Called tariffs "economic weapons"
  • Urged middle powers to unite
๐Ÿ‡บ๐Ÿ‡ฆ

Volodymyr Zelenskyy

President, Ukraine
Diplomatic
Announced trilateral US-Ukraine-Russia talks would begin in Abu Dhabi on January 23.
  • Met with Trump to finalize security guarantees
  • Peace talks framework established
  • Pushed for strong post-war protections
  • Special Address drew major attention
๐Ÿ‡ช๐Ÿ‡บ

Ursula von der Leyen

President, European Commission
Diplomatic
Hinted at the "mother of all deals" between EU and India.
  • Called proposed US tariffs a "mistake"
  • Announced EU-Mercosur trade deal
  • Positioned EU for alternative partnerships
  • Emphasized economic diversification
๐Ÿฆ

Lagarde, Georgieva, Okonjo-Iweala

ECB, IMF, WTO
Cautiously Optimistic
"Resiliency is built into the system, and that is showing up." โ€” WTO head
  • Called Trump's policy "biggest disruption in 80 years"
  • But noted 72% of trade still under WTO rules
  • Urged countries to "filter out the turmoil"
  • Conceded: "We won't go back to where we were"
"Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited."
โ€” Mark Carney, Prime Minister of Canada

โš–๏ธ Trump vs Allies: Position Comparison

Side-by-side comparison of key positions on major issues

Topic Trump Position Allied Response
๐Ÿ‡ฌ๐Ÿ‡ฑ Greenland Demands "right, title and ownership." Won't use force "this time" but allies will "remember." NATO framework deal reached. Denmark maintains sovereignty but enhanced Arctic security cooperation.
๐Ÿ’ฐ Tariffs Threatened EU tariffs if Greenland opposed. Called tariffs a "legitimate geopolitical instrument." Macron: "Fundamentally unacceptable." EU warned retaliation would be "unwise" but prepared alternatives.
๐Ÿ‡บ๐Ÿ‡ฆ Ukraine Met Zelenskyy, agreed to trilateral talks in Abu Dhabi starting Jan 23. Zelenskyy pushed for strong security guarantees. Framework for negotiations established.
๐ŸŒ World Order "America First" reasserted. European values called "inferior." Carney: "Rupture, not transition." Middle powers urged to unite. Economic fragmentation accelerating.
๐Ÿ“ˆ Economy Claims 5.4% growth, 1.6% inflation, $9T market gains. "Opposite of stagflation." IMF/WTO: Global economy showing "unexpected resilience" but "won't go back to where we were."
๐Ÿ  Financial Proposed $200B mortgage bond program and 10% credit card interest rate cap. Pitched as populist economic agenda. Markets cautiously optimistic. Banks raised concerns about rate cap feasibility.
๐ŸŒฌ๏ธ Energy Called wind turbines "loser windmills." Paris withdrawal reaffirmed. EU maintains climate commitments. New green investment initiatives announced.

๐Ÿ“… Davos 2026 Timeline

Day-by-day breakdown of the key events

Sunday, Jan 19
Forum Opens
56th World Economic Forum begins in Davos-Klosters. Theme: "A Spirit of Dialogue." Record 65 heads of state in attendance.
Monday, Jan 20
Macron Speaks
French President delivers strong rebuke of tariff threats. "We prefer respect to bullies... rule of law to brutality."
Tuesday, Jan 21
Trump's Special Address
1+ hour "free-wheeling" address. Demands Greenland, threatens tariffs on Europe, claims economic success. "I won't use force."
Tuesday, Jan 21
Carney's "Rupture" Speech
Canadian PM delivers what diplomats called "the most consequential speech on global affairs from a Canadian PM ever."
Wednesday, Jan 22
Economic Leaders Panel
ECB, IMF, WTO heads urge calm. "Biggest disruption in 80 years" but "resiliency is built into the system."
Thursday, Jan 23
Greenland Framework Deal
Trump and NATO Secretary General Rutte announce deal enhancing Arctic security while averting tariff threats.
Thursday, Jan 23
Ukraine Peace Talks Announced
Zelenskyy confirms trilateral US-Ukraine-Russia talks will begin in Abu Dhabi. Met with Trump on security guarantees.
Friday, Jan 23
Forum Closes
Markets stabilize as tariff threats recede. EU-Mercosur deal highlighted. "Mother of all deals" with India teased.

๐Ÿ“Š Trade Impact Indicators

Key metrics on global trade disruption and resilience

Government Trade Interventions (2025 vs 2019) +262%
Global Trade Still Under WTO Rules 72%
US Q4 2025 GDP Growth (claimed) 5.4%
Core Inflation (3-month) 1.6%

๐ŸŽฏ Outcomes & Analysis

What actually happenedโ€”and what it means going forward

๐Ÿ‡ฌ๐Ÿ‡ฑ Greenland: Framework Deal Explained
โ–ผ

What happened: After initially demanding "right, title and ownership" and warning allies to "remember" their choice, Trump announced a "framework deal" with NATO Secretary General Rutte on Thursday.

What it means: Denmark maintains sovereignty, but the US secures enhanced Arctic security cooperation. Trump can claim a win without the constitutional and international law problems of actual acquisition.

What to watch: Implementation details, US military presence expansion, and whether this satisfies Trump's stated goals or becomes a stepping stone to further demands.

โ†’ See our full Greenland Acquisition Analysis

๐Ÿ’ฐ Tariff Threats: What Changed
โ–ผ

Before Davos: Trump threatened new tariffs on European nations if they opposed Greenland demands.

Macron's response: Called tariff leverage against territorial sovereignty "fundamentally unacceptable." Warned this is a choice between "rule of law and brutality."

Outcome: Trump announced no new EU tariffs "for now." Markets stabilized. EU positioned alternative trade deals (Mercosur, potentially India).

US Trade Rep position: Jamieson Greer defended tariffs as a "lesser measure" and warned Europe that retaliation would be "unwise."

๐Ÿ‡บ๐Ÿ‡ฆ Ukraine Peace Talks: What's Next
โ–ผ

The announcement: Zelenskyy confirmed trilateral US-Ukraine-Russia talks will begin in Abu Dhabi on January 23.

Security guarantees: Zelenskyy met with Trump to finalize terms. The exact nature of post-war protections remains a key negotiation point.

What to watch: Whether talks produce real progress or serve as theater. Russia's actual willingness to negotiate in good faith. European role in any settlement.

๐ŸŒ The "Rupture" Thesis: World Order Implications
โ–ผ

Carney's warning: "We are in the midst of a rupture, not a transition. The old world order is not coming back."

What this means:

  • Economic integration is now weaponized
  • Tariffs used as geopolitical leverage
  • Financial infrastructure as coercion
  • Supply chains as vulnerabilities

Middle power strategy: "If we're not at the table, we're on the menu." Canada, EU, and others positioning for a multipolar world.

WTO view: "Biggest disruption in 80 years" but system resilience is "showing up." Still, "we won't go back to where we were."

๐Ÿค– AI & Tech: Musk's Predictions
โ–ผ

Musk at Davos: AI will become "smarter than any individual human" by end of 2026, and likely exceed "all of humanity combined" within five years.

Tesla announcement: Humanoid robots will be sold to the public starting 2027.

Broader context: Tech titans including Jensen Huang (Nvidia), Satya Nadella (Microsoft), Demis Hassabis (Google DeepMind), and Arthur Mensch (Mistral AI) attended.

Sources