Political leaders, CEOs and opinion-makers arrived at Davos in Switzerland ahead of the World Economic Forum (WEF), with mounting trade tensions between the US and Europe set to dominate discussions after Donald Trump’s renewed tariff threats.
Mr Trump, who is expected to deliver a keynote address later this week, is attending with what organisers say is the largest US delegation ever at the forum. It includes treasury secretary Scott Bessent, secretary of state Marco Rubio, and Middle East envoy Steve Witkoff.
Organisers say 3,000 participants from more than 130 countries are expected this year, including 850 chief executives and at least 60 heads of state or government, a record for the event.
The annual gathering comes as Europe scrambles to respond to Mr Trump’s threat that the US will impose escalating tariffs on Denmark, Germany, France, UK, Sweden, Finland, Norway, and the Netherlands unless Washington is allowed to take over Greenland.
Danish prime minister Mette Frederiksen said Europe “will not be blackmailed” while Italy’s prime minister Giorgia Meloni described the tariff threat as “a mistake”.
The US president’s latest threats have rattled markets. The Euro and the Pound fell against the dollar in early trading, with analysts warning that a fresh trade conflict could knock growth in export-dependent economies such as the UK and Germany.
In the UK, ministers said that they wanted to avoid an escalation while protecting the trade agreements struck with Washington last year.
Chancellor Rachel Reeves is due to attend the forum on Tuesday.
Reform UK leader Nigel Farage is also travelling to Davos, despite years of criticising the forum as a symbol of globalism. In 2023 he called Keir Starmer a “full-on globalist, hanging out with his mates at the WEF”. His deputy, Richard Tice, claimed that Mr Farage hoped to speak with Mr Trump about concerns over potential US tariffs on Britain.
In its latest Global Risks Report, published ahead of the gathering, the WEF forecast that “geo-economic confrontation” was likely to be the most significant global risk over the next two years followed by interstate war.
Alongside trade tensions, discussions at the forum are expected to cover the war in Ukraine, instability in the Middle East, and global economic growth.
Ukrainian officials confirmed that talks with US counterparts would continue on the sidelines of the meeting.
Ahead of the Davos meeting, Oxfam warned on Monday 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 per cent of global energy demand still met by fossil fuels, leaving many countries exposed to geopolitical shocks and supply disruptions.
Artificial intelligence, global market volatility and the outlook for growth are also on the agenda.
Founded in 1971, the WEF is one of the world’s most influential annual gatherings, combining public panels with private meetings across the Swiss resort.
While organisers say the forum remains a platform for dialogue, critics argue that its ability to translate discussion into action is highly diminished amid rising geopolitical fragmentation.
Source: UK Politics - www.independent.co.uk
