European leaders are taking an early lead at the World Economic Forum in Davos this week, as renewed trade tensions with the United States cast a long shadow over the annual gathering. The focus is firmly on the prospect of new US tariffs, linked to an escalating dispute involving Greenland, which threatens to strain already fragile transatlantic relations.
Senior figures including European Commission President Ursula von der Leyen and French President Emmanuel Macron are scheduled to address the forum ahead of an anticipated appearance by US President Donald Trump. They are joined by leaders from other major economies, reflecting the broad unease caused by Washington’s increasingly assertive trade stance. China and Canada, both of which have experienced recent trade friction with the US, are also prominently represented.
President Trump is expected to dominate discussions when he speaks later in the week. A sizeable US delegation is already in Davos, promoting an economic agenda that has unsettled many allies and challenged long-standing assumptions about global trade cooperation. The message from Washington has been clear: tariff measures remain firmly on the table as a tool of negotiation.
European leaders are now weighing potential countermeasures following threats of tariffs against several EU member states. While there is little appetite for escalation, officials have signalled that Europe is prepared to defend its economic interests if required. At the same time, there is a recognition that retaliation could deepen divisions at a time when cooperation is needed on issues ranging from security to climate policy.
Speaking in Davos, EU leaders stressed the importance of respecting national sovereignty, particularly in relation to Greenland and Denmark. Behind the scenes, diplomatic engagement continues, including meetings with members of the US Congress, aimed at cooling tensions and keeping dialogue open.
Germany has indicated a willingness to pursue direct talks with President Trump during the forum, underlining a shared European desire to avoid a spiral of retaliatory measures. This cautious approach reflects concern that tariff disputes between allies risk weakening the transatlantic relationship and creating broader economic uncertainty.
An emergency summit of EU leaders is scheduled in Brussels to assess the situation and agree on a coordinated response. The tone so far has been measured, with emphasis on de-escalation rather than confrontation. Nordic leaders have also weighed in, warning that tariff threats between allies undermine trust and could trigger a damaging cycle of economic retaliation.
Beyond Europe and the US, Davos discussions are highlighting a shifting global landscape. Canada is exploring ways to reduce its dependence on the US market, while also seeking to reset relations with China. Chinese officials, facing their own long-running trade disputes with Washington, are using the forum to project stability and openness to dialogue.
With crises in Ukraine, the Middle East, Venezuela and Iran also on the agenda, the Davos meetings underline how trade tensions risk spilling into wider geopolitical challenges. For business leaders and policymakers alike, the coming days will test whether diplomacy can prevail over confrontation.
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