Davos

US President Donald Trump is set to join senior political and corporate leaders at the World Economic Forum in Davos on Wednesday, a day after sharp exchanges and economic threats highlighted growing friction between Washington and Europe.

The annual gathering in the Swiss Alps is expected to draw close to 3,000 senior delegates from around 130 countries, along with activists and observers, for discussions, negotiations and policy debates scheduled through Friday.

Trump’s third appearance at the forum as president comes amid unease among US allies over his expressed interest in Greenland, while countries in Latin America remain wary of Washington’s push to gain greater control over Venezuela’s oil resources.

On Tuesday, European Commission President Ursula von der Leyen criticised the proposed US tariffs targeting eight European nations in connection with Greenland, calling the move an error and raising doubts over Washington’s reliability. French President Emmanuel Macron warned that the European Union could respond by activating its strongest trade countermeasures, often described as a “trade bazooka.”

Latest developments

Trump arrival delayed by three hours

US Treasury Secretary Scott Bessent said President Trump is expected to reach Switzerland around three hours later than planned. Trump is still scheduled to deliver a closely watched speech at the forum on Wednesday.

Markets slide after tariff threat

Responding to questions about the sharp fall on Wall Street following Trump’s tariff warning, Bessent played down concerns, saying the administration is not alarmed by the market reaction.

US equities recorded broad-based losses, extending declines from last week. Almost all major sectors ended in the red. The S&P 500 dropped 143.15 points, or 2.1 per cent, to close at 6,796.86, marking its steepest single-day fall since October.

Treasury secretary pushes back on Europe’s response

Bessent criticised what he described as Europe’s “anger” and “bitterness” over the tariff announcement, urging European leaders to reserve judgment until Trump outlines his position in Davos. He expressed confidence that the US president’s arguments on Greenland would resonate once fully explained.

The Treasury chief also voiced frustration with the US Federal Reserve, as the Supreme Court prepares to hear arguments on Trump’s attempt to remove Federal Reserve Governor Lisa Cook over allegations of mortgage fraud, which she has denied. No sitting Fed governor has ever been removed by a president in the institution’s 112-year history.

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Mechanical issue delays Trump’s travel

Trump’s journey to Davos was disrupted after a minor electrical issue was detected aboard Air Force One late Monday, prompting the aircraft to turn back roughly 30 minutes into the flight as a precaution. The president later continued his trip aboard an Air Force C-32, a modified Boeing 757, departing shortly after midnight.