President Donald Trump on Wednesday described the United States as the “economic engine of the planet” while addressing global business leaders at the 2026 World Economic Forum in Davos.
The US president spoke a day after marking the first anniversary of his return to the White House, arriving in Switzerland for what has become a tense engagement with world leaders pushing back against his foreign policy stance, particularly his renewed bid to take control of Greenland.
“I come to this year’s World Economic Forum with very phenomenal greetings from America,” Trump told the gathering.
Reflecting on his first year back in office, he said, “Yesterday marked the first anniversary of my inauguration, and today, after one year back at the White House, our economy is booming, productivity is surging, investment is soaring, and incomes are rising. Inflation is being defeated. Our previously open border is closed and impenetrable.”
Trump claimed the country was experiencing an unprecedented turnaround. “The United States is in the midst of the fastest and most dramatic economic turnaround in the country’s history,” he said.
He sharply criticised his predecessor, stating: “Under the Biden administration, the economy was plagued by the nightmare of stagflation, of low growth and high inflation, which was a recipe for misery and failure.”
According to Trump, his policies have reversed that trend. “But now, after just one year of my policies, we have witnessed the exact opposite. No inflation and an extraordinarily high economic growth.”
He cited economic indicators to back his claims, saying, “Over the past three months, core inflation has been just about 1.6 per cent. Meanwhile, fourth quarter growth is projected to be 4.6 per cent, far greater than I or even anybody predicted.”
Trump added that public sentiment was strongly in his favour. “People are doing well and are very happy with me.”
He further disclosed that massive capital inflows were expected under his administration. “In the next four years, we have secured nothing less than $18 trillion in investments. When the final numbers come out, it will be close to about $20 trillion in investments.”
Trump said the US economy was outperforming global expectations. “The United States economy is on pace to grow at double the rate that was projected by the IMF.”
Emphasising America’s global economic influence, he declared, “When America booms, the world booms. When we go down, the world goes down with us.”
Admitting surprise at the speed of the rebound, Trump said, “The economy is at a point I never thought we would be. My biggest surprise is that I thought the growth would take more than a year. But it has happened very quickly.”
He concluded by contrasting US progress with Europe’s challenges. “How we have achieved this economic miracle and intend to keep it is to lift the living standard of our people as we have never done before. And how you, too, from the places you come from, can do much more because certain places in Europe are not even recognisable anymore.”
“I don’t want to insult anybody. I love Europe, and I want to see Europe good, but it is not heading in the right direction,” he added.
Greenland Tensions Dominate Davos
Trump arrived in Zurich after a delay caused by a “minor electrical issue” that forced Air Force One to return shortly after takeoff. Even before his Davos appearance, he reignited controversy over Greenland, insisting the mineral-rich Arctic territory is crucial for US and NATO security amid rising competition with Russia and China.
NATO Secretary-General Mark Rutte responded cautiously, telling the forum that “thoughtful diplomacy” was required as Trump’s stance risks triggering a major crisis within the alliance.
France also weighed in, with President Emmanuel Macron’s office saying Paris supports a NATO military exercise in Greenland and is prepared to take part. Macron had earlier warned against US efforts to “subordinate Europe” and criticised Trump’s “unacceptable” threats to impose tariffs on allies linked to the Greenland dispute.
European leaders have threatened retaliatory measures after Trump raised the possibility of tariffs of up to 25 per cent on several European countries for supporting Denmark.
‘Behaving Very Strangely’ for an Ally
European Central Bank President Christine Lagarde also criticised Washington’s posture, saying the US was “behaving very strangely” for a long-standing ally.
Asked whether the United States should still be regarded as an ally of the European Union, Lagarde said: “They are behaving very strangely for allies.”
“When you are allies under the North Atlantic Treaty, when you have been allies for decades and have been part of each other’s history, threatening to seize territory that is clearly not for sale, such as Greenland, and waving tariff restrictions, and various other restrictions on international trade, is not really behaving like an ally,” she said.
What you should know
Trump’s Davos speech blends economic triumphalism with an increasingly confrontational foreign policy posture.
While he projects strong domestic economic performance and rising investor confidence, his aggressive stance on Greenland has unsettled NATO allies and widened transatlantic tensions. European leaders fear that territorial threats and tariff pressure could undermine alliance unity at a time of heightened global instability.
The clash at Davos highlights a growing divide between US economic nationalism and Europe’s call for diplomatic restraint, setting the tone for strained relations in the years ahead.
