Trump Davos speech: Greenland tariffs, global economy, and peace initiatives
TOI GLOBAL DESK | TOI GLOBAL | Jan 21, 2026, 19:13 IST
During President Donald Trump's appearance at Davos for the World Economic Forum, his ambitious proposal to acquire Greenland raised eyebrows while the looming threat of new tariffs on European nations sparked anxiety among attendees. Consequently, key discussions regarding domestic economic challenges were sidelined.
President Donald Trump addressed the World Economic Forum in Davos, Switzerland, where his controversial proposal to acquire Greenland from Denmark threatened to strain relations with European allies and potentially overshadow his stated agenda of discussing domestic affordability issues. His arrival was delayed due to a minor electrical issue with Air Force One, requiring a switch of aircraft, though his keynote speech was not expected to be postponed. The forum, attended by billionaires and business leaders, saw significant interest in Trump's address, with notable figures like Michael Dell and Marc Benioff seeking entry.
Trump's initial plan was to focus on domestic policy, but his speech was anticipated to include discussions on Greenland and the U.S. military operation that led to the recent ouster of Venezuelan President Nicolás Maduro. Foreign policy, particularly Washington's influence in the hemisphere, was slated to be a more central theme on Thursday. This included his intention to discuss the "Board of Peace" he is establishing to oversee the U.S.-brokered ceasefire in the Israel-Hamas war.
This information was provided by a White House official who spoke on the condition of anonymity to discuss plans not yet made public. Trump was also scheduled to hold approximately five bilateral meetings with foreign leaders, though specific details were not disclosed. The forum was attended by over 60 heads of state, with around 30 countries expected to join the Board of Peace after invitations were extended to about 50 nations the previous week.
The threat of U.S. import taxes loomed large as Trump arrived at the forum. He had previously threatened steep tariffs on Denmark and seven other allies unless they negotiated a transfer of Greenland, a concession European leaders indicated they were unwilling to make. Trump stated that these tariffs would commence at 10% the following month and escalate to 25% in June. Such rates were expected to increase costs and slow economic growth, potentially hindering his efforts to address the high cost of living.
In a text message circulated among European officials, Trump linked his aggressive stance on Greenland to his not being awarded the Nobel Peace Prize the previous year. He reportedly informed Norway's prime minister, Jonas Gahr Støre, that he no longer felt "an obligation to think purely of Peace."
Amidst a period of strained relations with long-standing allies, the outcomes of Trump's two-day visit to Switzerland remained uncertain. Prior to his speech, British Prime Minister Keir Starmer declared, "I will not yield."
"Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position," Starmer stated during his weekly questioning in the House of Commons.
U.S. Commerce Secretary Howard Lutnick informed a Davos panel before Trump's arrival that he and the President intended to deliver a clear message: "Globalization has failed the West and the United States of America. It’s a failed policy."
Trump had promised before departing the White House, "This will be an interesting trip," and indeed, the journey began with a minor setback. A small electrical problem on Air Force One prompted the crew to turn the plane around approximately 30 minutes into the flight as a precautionary measure.
Wall Street experienced a downturn on Tuesday as investors reacted to Trump's new tariff threats and escalating tensions with European allies. The S&P 500 fell 2.1%, marking its largest drop since October, while the Dow Jones Industrial Average declined 1.8% and the Nasdaq composite slumped 2.4%.
French President Emmanuel Macron, in his address to the forum, commented, "It’s clear that we are reaching a time of instability, of imbalances, both from the security and defense point of view, and economic point of view." While not directly mentioning Trump, Macron urged fellow leaders to reject the "law of the strongest."
European Commission President Ursula von der Leyen warned that if Trump proceeded with the tariffs, the bloc's response "will be unflinching, united and proportional." She pointedly suggested that Trump's new tariff threat could undermine a U.S.-EU trade framework that the Trump administration had worked diligently to finalize that summer.
"The European Union and the United States have agreed to a trade deal last July," von der Leyen stated in Davos. "And in politics as in business — a deal is a deal. And when friends shake hands, it must mean something."
Trump had planned to use his Davos appearance to discuss making housing more attainable and other affordability issues that are high priorities for Americans. However, Trump’s Greenland tariff threat could disrupt the U.S. economy if it jeopardizes the trade truce reached last year between the U.S. and the EU, according to Scott Lincicome, a tariff critic and vice president on economic issues at the Cato Institute.
"Significantly undermining investors' confidence in the U.S. economy in the longer term would likely increase interest rates and thus make homes less affordable," Lincicome explained.
On Tuesday, Trump also cautioned Europe against retaliatory actions for the impending new tariffs.
"Anything they do with us, I’ll just meet it," Trump said on NewsNation’s “Katie Pavlich Tonight.” "All I have to do is meet it, and it’s going to go ricocheting backward."
Davos, a forum renowned for its appeal to the global elite, presented an unusual setting for a speech on affordability. However, White House officials promoted it as an opportunity for Trump to attempt to rekindle populist support in the U.S., where many voters who supported him in 2024 consider affordability a significant problem. Approximately six in ten U.S. adults now believe that Trump has negatively impacted the cost of living, according to the latest survey by The Associated Press-NORC Center for Public Affairs Research.
U.S. home sales are at a 30-year low, with rising prices and elevated mortgage rates preventing many prospective buyers from entering the market. Trump has previously announced plans to purchase $200 billion in mortgage securities to help lower interest rates on home loans and has called for a ban on large financial companies buying houses.
On Thursday, Trump planned to discuss the Board of Peace, an initiative intended to oversee the end of the Israel-Hamas war in Gaza. This board might also assume a broader mandate, potentially rivaling the United Nations.
Fewer than 10 leaders have accepted invitations to join the group thus far, including a handful of leaders considered to be anti-democratic authoritarians. Several of America's key European partners, including Britain, France, and Germany, have either declined or remained noncommittal.
Trump told reporters on Tuesday that his peace board "might" eventually render the U.N. obsolete but insisted he wants to see the international body continue to function. "I believe you got to let the U.N. continue, because the potential is so great," he stated. Weissert and Madhani reported from Washington. Michelle L. Price contributed from Washington.
Trump's initial plan was to focus on domestic policy, but his speech was anticipated to include discussions on Greenland and the U.S. military operation that led to the recent ouster of Venezuelan President Nicolás Maduro. Foreign policy, particularly Washington's influence in the hemisphere, was slated to be a more central theme on Thursday. This included his intention to discuss the "Board of Peace" he is establishing to oversee the U.S.-brokered ceasefire in the Israel-Hamas war.
This information was provided by a White House official who spoke on the condition of anonymity to discuss plans not yet made public. Trump was also scheduled to hold approximately five bilateral meetings with foreign leaders, though specific details were not disclosed. The forum was attended by over 60 heads of state, with around 30 countries expected to join the Board of Peace after invitations were extended to about 50 nations the previous week.
The threat of U.S. import taxes loomed large as Trump arrived at the forum. He had previously threatened steep tariffs on Denmark and seven other allies unless they negotiated a transfer of Greenland, a concession European leaders indicated they were unwilling to make. Trump stated that these tariffs would commence at 10% the following month and escalate to 25% in June. Such rates were expected to increase costs and slow economic growth, potentially hindering his efforts to address the high cost of living.
In a text message circulated among European officials, Trump linked his aggressive stance on Greenland to his not being awarded the Nobel Peace Prize the previous year. He reportedly informed Norway's prime minister, Jonas Gahr Støre, that he no longer felt "an obligation to think purely of Peace."
Amidst a period of strained relations with long-standing allies, the outcomes of Trump's two-day visit to Switzerland remained uncertain. Prior to his speech, British Prime Minister Keir Starmer declared, "I will not yield."
"Britain will not yield on our principles and values about the future of Greenland under threats of tariffs, and that is my clear position," Starmer stated during his weekly questioning in the House of Commons.
U.S. Commerce Secretary Howard Lutnick informed a Davos panel before Trump's arrival that he and the President intended to deliver a clear message: "Globalization has failed the West and the United States of America. It’s a failed policy."
Trump had promised before departing the White House, "This will be an interesting trip," and indeed, the journey began with a minor setback. A small electrical problem on Air Force One prompted the crew to turn the plane around approximately 30 minutes into the flight as a precautionary measure.
Wall Street experienced a downturn on Tuesday as investors reacted to Trump's new tariff threats and escalating tensions with European allies. The S&P 500 fell 2.1%, marking its largest drop since October, while the Dow Jones Industrial Average declined 1.8% and the Nasdaq composite slumped 2.4%.
French President Emmanuel Macron, in his address to the forum, commented, "It’s clear that we are reaching a time of instability, of imbalances, both from the security and defense point of view, and economic point of view." While not directly mentioning Trump, Macron urged fellow leaders to reject the "law of the strongest."
European Commission President Ursula von der Leyen warned that if Trump proceeded with the tariffs, the bloc's response "will be unflinching, united and proportional." She pointedly suggested that Trump's new tariff threat could undermine a U.S.-EU trade framework that the Trump administration had worked diligently to finalize that summer.
"The European Union and the United States have agreed to a trade deal last July," von der Leyen stated in Davos. "And in politics as in business — a deal is a deal. And when friends shake hands, it must mean something."
Trump had planned to use his Davos appearance to discuss making housing more attainable and other affordability issues that are high priorities for Americans. However, Trump’s Greenland tariff threat could disrupt the U.S. economy if it jeopardizes the trade truce reached last year between the U.S. and the EU, according to Scott Lincicome, a tariff critic and vice president on economic issues at the Cato Institute.
"Significantly undermining investors' confidence in the U.S. economy in the longer term would likely increase interest rates and thus make homes less affordable," Lincicome explained.
On Tuesday, Trump also cautioned Europe against retaliatory actions for the impending new tariffs.
"Anything they do with us, I’ll just meet it," Trump said on NewsNation’s “Katie Pavlich Tonight.” "All I have to do is meet it, and it’s going to go ricocheting backward."
Davos, a forum renowned for its appeal to the global elite, presented an unusual setting for a speech on affordability. However, White House officials promoted it as an opportunity for Trump to attempt to rekindle populist support in the U.S., where many voters who supported him in 2024 consider affordability a significant problem. Approximately six in ten U.S. adults now believe that Trump has negatively impacted the cost of living, according to the latest survey by The Associated Press-NORC Center for Public Affairs Research.
U.S. home sales are at a 30-year low, with rising prices and elevated mortgage rates preventing many prospective buyers from entering the market. Trump has previously announced plans to purchase $200 billion in mortgage securities to help lower interest rates on home loans and has called for a ban on large financial companies buying houses.
On Thursday, Trump planned to discuss the Board of Peace, an initiative intended to oversee the end of the Israel-Hamas war in Gaza. This board might also assume a broader mandate, potentially rivaling the United Nations.
Fewer than 10 leaders have accepted invitations to join the group thus far, including a handful of leaders considered to be anti-democratic authoritarians. Several of America's key European partners, including Britain, France, and Germany, have either declined or remained noncommittal.
Trump told reporters on Tuesday that his peace board "might" eventually render the U.N. obsolete but insisted he wants to see the international body continue to function. "I believe you got to let the U.N. continue, because the potential is so great," he stated. Weissert and Madhani reported from Washington. Michelle L. Price contributed from Washington.