Davos Under Duress: Global Leaders Clash Over Trade and the “New Colonialism” (3-Videos)

DAVOS, Switzerland — The 56th Annual Meeting of the World Economic Forum (WEF) opened today under the theme “A Spirit of Dialogue,” though the atmosphere in the snow-dusted Alps was anything but harmonious. As nearly 3,000 leaders from business and government gathered, the polite discourse of previous years was replaced by sharp warnings over trade wars, territorial disputes, and the destabilizing speed of technological change.

The morning sessions were dominated by two starkly different visions of the global future: a bullish, America-first economic projection from U.S. Commerce Secretary Howard Lutnick, and a stern defense of European sovereignty by French President Emmanuel Macron.

Video Courtesy of DWS

Lutnick’s Bold Forecast and Tariff Warnings

U.S. Commerce Secretary Howard Lutnick kicked off the day’s economic panels with an aggressive outlook for the American economy. Speaking during a high-profile session, Lutnick projected that U.S. GDP growth would exceed 5% in the first quarter of 2026.

Video Courtesy of DWS

“Our economy is poised to flourish, but we are being held back by ourselves,” Lutnick stated, pointing specifically to high interest rates which he argued are “hundreds of basis points too high.” He suggested that with more aggressive monetary easing, the U.S. could easily reach 6% growth.

However, the mood shifted when the discussion turned to the burgeoning trade dispute over Greenland. With the Trump administration recently threatening a 10% to 25% tariff on European allies who oppose American interests in the Arctic territory, Lutnick warned the European Union against retaliation.

“If we’re going to have a kerfuffle, so be it,” Lutnick remarked. “But we know where it ends. It ends in a reasonable manner. If Brussels chooses a ‘tit-for-tat’ escalation, they should remember that disagreements with allies don’t make them not allies—but we will protect our interests.”

Macron’s Defense of the Rule of Law

President Emmanuel Macron, appearing in a special address later that afternoon, offered a sharp rebuttal. Wearing mirrored sunglasses due to a recent eye condition, Macron delivered a speech that French officials described as a “clarion call for European independence.”

Video Courtesy of DWS

Macron denounced what he termed a “new colonial approach” and “new imperialism” in global politics, a thinly veiled reference to the U.S. pressure over Greenland. He urged the European Union to remain “unflinching” and encouraged the use of the bloc’s “anti-coercion instrument”—an economic “trade bazooka” designed to sanction countries that use trade as a political weapon.

“Europe must not bend to bullies or abandon the rule of law,” Macron told the assembly. “Nostalgia for the old world order will not save us. We must build a new form of European independence that protects our citizens from external shocks, whether they come from the East or the West.”

Three Pillars of Global Anxiety

Beyond the immediate diplomatic friction, the 2026 Davos meetings are focused on three systemic shifts:

1. Economic Uncertainty

While Lutnick remained optimistic, the International Monetary Fund (IMF) provided a more tempered forecast. IMF Managing Director Kristalina Georgieva noted that while investment in AI is boosting productivity, geoeconomic fragmentation remains the top risk for 2026. The IMF currently projects a more modest 2.4% global growth rate, warning that a full-scale trade war between the U.S. and the EU could shave significant points off that figure.

2. Geopolitical Tensions

The “spirit of dialogue” is being tested by multiple hot zones. While the Greenland dispute headlined today’s talks, the ongoing conflict in Ukraine and heightened tensions in the Middle East and Venezuela loomed large. NATO Secretary-General Mark Rutte and other leaders held emergency side meetings to discuss the stability of the Atlantic alliance, with Belgian Prime Minister Bart De Wever warnng that “the end of 80 years of Atlanticism” could be near if current trade threats are realized.

3. Rapid Technological Change

The “AI Power Play” was a recurring theme in the Congress Centre. Tech titans including Satya Nadella (Microsoft) and Jensen Huang (Nvidia) discussed the transition from AI as a “chatbot” to AI as the foundational infrastructure of the global economy.

However, the enthusiasm was tempered by societal fears. The WEF’s Global Risks Report 2026 highlighted AI-driven misinformation and labor market displacement as top-tier threats. Georgieva warned that a “tsunami is hitting the labor market,” with AI expected to affect 60% of jobs in advanced economies.

Looking Ahead

The summit continues tomorrow with the highly anticipated arrival of President Donald Trump, who is expected to address the forum Wednesday afternoon. His speech is slated to focus on “making housing affordable” and reinforcing his administration’s trade stance, a prospect that has the Davos elite bracing for further disruption.

As the sun set over the Alps, the divide between the “T-Rex diplomacy” of Washington and the “anti-coercion” rhetoric of Paris set the stage for one of the most contentious weeks in the Forum’s 56-year history.

News Sources & Links

• The World Economic Forum (Official): Special Address by Emmanuel Macron
• The Guardian: Nervous Rex: The Davos Elite Brace for Trump
• Associated Press: Davos Live Updates: Macron Encourages EU Trade Tools
• The Economic Times: Lutnick Warns EU of ‘Tit-for-Tat’ Fight Over Greenland
• Investing.com: Commerce Secretary Lutnick Forecasts 5% U.S. GDP Growth
• Reuters: Lutnick Expects Q1 Growth Above 5%, Warns Against Retaliation