This week's World Economic Forum in Davos, Switzerland, has been dramatically upended by the arrival of US President Donald Trump, who is poised to transform the elite gathering from a talking shop into a high-stakes diplomatic battleground.
A Stark Shift in the Alpine Air
The atmosphere is a world away from January 2025, when a virtual President Trump addressed the forum from Washington, declaring an end to the liberal economic order it traditionally champions. Twelve months on, that warning has become a concrete reality, and the President is present in person to underscore his 'America First' agenda with formidable force.
He leads an 80-strong US delegation that includes five cabinet members and his most influential advisors, marking an almighty display of American power at the nexus of global business and politics. His arrival is shadowed by significant policy turbulence, most notably the recent threat of tariffs against Greenland's allies, including the United Kingdom and other Nordic nations.
Deal-Making Paradise Meets Diplomatic Crisis
This transatlantic rift, described as the most serious in decades, exemplifies the President's readiness to deploy economic measures against allies. It follows closely on the heels of renewed US gunboat diplomacy in Venezuela, aimed at securing oil reserves. These actions come as global economies are still adjusting to the sweeping 'Liberation Day' tariffs imposed last April.
While Davos is famously a deal-making paradise for corporate chiefs—where more can be achieved in three days than three months back home—this year's most valuable agreements may be political. The leaders of six G7 nations will be in attendance, with French President Emmanuel Macron and EU President Ursula von der Leyen set to outline their positions. Notably absent is UK Prime Minister Sir Keir Starmer, though Chancellor Rachel Reeves will lead the British delegation, hoping to advocate for investment amidst the diplomatic noise.
The Shifting Agenda and Global Stakes
Trump's presence has forcefully redirected the forum's focus. While the war in Ukraine and its reconstruction were expected to be central diplomatic topics, they now risk being overshadowed. Chinese Vice Premier He Lifeng, meanwhile, may observe with interest as old Atlantic allies clash.
Publicly, the event remains a series of panels on global challenges, but the real power lies in private meetings. As one chief executive noted, the value of Davos is in the unparalleled access it provides. This year, however, the negotiations occurring behind closed doors will carry profound implications for international alliances and the future of global trade, with the spectre of tariffs against Europe looming large over the snowy peaks.
