As the world’s most influential leaders, CEOs, and opinion-makers gather in Davos, Switzerland for the annual World Economic Forum (WEF), the looming threat of escalating trade tensions between the US and Europe is set to dominate the discussions.
The US delegation, led by President Donald Trump, who is expected to deliver a keynote address later this week, is the largest ever to attend the forum. It includes Treasury Secretary Scott Besent, Secretary of State Marco Rubio, and Middle East envoy Steve Witkoff.
The gathering comes as Europe scrambles to respond to Trump’s renewed threat to impose escalating tariffs on Denmark, Germany, France, the UK, Sweden, Finland, Norway, and the Netherlands unless Washington is allowed to take over Greenland. Danish Prime Minister Mette Frederiksen has firmly stated that Europe “will not be blackmailed,” while Italian Prime Minister Giorgia Meloni has described the tariff threat as “a mistake.”
The US president’s latest moves have rattled global markets, with the Euro and the Pound falling against the dollar in early trading. Analysts warn that a fresh trade conflict could severely impact export-dependent economies, such as the UK and Germany.
In the UK, ministers have expressed a desire to avoid an escalation while protecting the trade agreements struck with Washington last year. Chancellor Rachel Reeves is set to attend the forum on Tuesday, while Reform UK leader Nigel Farage, a longtime critic of the WEF, is also traveling to Davos, hoping to speak with Trump about potential US tariffs on Britain.
Alongside trade tensions, the forum’s agenda is expected to cover the ongoing war in Ukraine, instability in the Middle East, and global economic growth. Ukrainian officials have confirmed that talks with their US counterparts will continue on the sidelines of the meeting.
Ahead of the Davos gathering, Oxfam has warned that billionaire wealth hit a new record in 2025, growing three times faster than in recent years, even as half the world’s population continued to live in poverty. Energy security is another focus, with over 80 percent of global energy demand still met by fossil fuels, leaving many countries exposed to geopolitical shocks and supply disruptions.
The WEF, founded in 1971, remains one of the world’s most influential annual gatherings, combining public panels with private meetings across the Swiss resort. While organizers claim the forum remains a platform for dialogue, critics argue that its ability to translate discussions into action is highly diminished amid rising geopolitical fragmentation.