Opening his speech to a packed hall of global business leaders and policymakers, Trump struck an assertive “America First” tone. After joking that he was addressing “so many friends — a few enemies,” he presented what he described as “truly phenomenal news from America,” claiming that inflation had been defeated, the U.S. economy was booming, and that progress had been made on securing the nation’s borders.
“I love Europe, and I want to see Europe go good,” Trump said, “but it’s not heading in the right direction.” He added that “certain places in Europe are not even recognisable… and that’s in a very negative way.”
His comments reflected longstanding grievances with European policies and perceived lack of preparation on trade and security fronts.
Greenland and Trade Disputes Take Center Stage
Trump’s address was delivered amid escalating tensions over his renewed push to assert U.S. strategic interests in Greenland, an autonomous Danish territory. He referenced the island’s strategic importance, stating there were “no such thing as rare earth materials in Greenland,” but that its value lay in national and international security. He asserted that Denmark had historically been unable to defend its own territory and suggested the U.S. was compelled to step in, language that alarmed European leaders and sparked sharp pushback in Davos and capitals across Europe. Trump also revived threats to impose tariffs — up to 25 per cent — on European countries that resist negotiations over Greenland, a stance that has drawn strong criticism from EU officials who warn of a potential rupture in the post‑war global order.
European Leaders Push Back
European policymakers attending the forum responded forcefully to Trump’s rhetoric. Ursula von der Leyen, President of the European Commission, described the tariff threats as a “mistake” that could undermine long‑standing alliances and warned against actions that might “plunge us into a downward spiral.” She reaffirmed Europe’s commitment to territorial sovereignty and signalled plans for coordinated economic and Arctic security measures. Other European voices at Davos urged unity and diplomatic engagement. NATO Secretary General Mark Rutte called for “thoughtful diplomacy” even as debates over Greenland intensified, and leaders from Finland to Belgium emphasised Europe’s readiness to defend its interests without reliance on U.S. support.
Domestic Focus, International Fallout
While the White House has said Trump intended to emphasise domestic affordability and his proposed “Board of Peace” initiative at the forum, his pointed critique of Europe and aggressive posture over Greenland dominated headlines and diplomatic conversations in Davos. European leaders have framed the dispute as symptomatic of broader strains in transatlantic relations, raising questions about the future of cooperation on trade, security, and global governance.
