Trump Attacks UK Net Zero and Fed in Davos Speech

Speaking at the World Economic Forum in Davos, President Trump outlined his criticisms of European energy policy and U.S. monetary strategy.

President Trump delivered a sharp critique of European energy policies at the World Economic Forum in Davos, singling out the UK's net zero strategy as a key cause of its economic struggles. In a wide-ranging speech, he also turned his attention to domestic policy, renewing his attacks on the U.S. Federal Reserve and its chairman, Jerome Powell.

UK's Net Zero Strategy Under Fire

Trump identified the commitment to net zero emissions as a primary driver of higher prices and stagnant growth. He argued that the Labour government in the UK had disregarded "one of the greatest reserves in the world" by limiting development in the North Sea.

"The UK produces one third of the total energy from all sources that it did in 1999," Trump stated. He dismissed claims that the region's resources were depleted, insisting, "They like to say 'that's depleted'. The North Sea is incredible."

He suggested that significant oil and gas reserves remain undiscovered and blamed government policies for making it "impossible" for companies to invest.

Criticism of Taxes and Wind Energy

Trump specifically targeted UK taxes, claiming the government took "92 per cent" of revenue from energy projects. This figure is higher than the 78 percent rate estimated by government analysis and industry sources.

He also blasted the UK's commitment to building more wind farms, asserting they were loss-making ventures that ruined landscapes. "One thing I have noticed is the more wind mills a country has, the more the country loses and the worse that country is doing," he said.

Trump called China "smart" for selling net zero technology while not building its own wind farms. However, a BloombergNEF report from last year noted that China accounted for 70 percent of global wind farm installations in 2024. This line of criticism is not new; as early as last May, Trump claimed the UK's North Sea reserves still had "a century of drilling left" that could help lower energy costs.

Trump Turns Focus to the Federal Reserve

During his Davos address, Trump also commented extensively on U.S. domestic economic policy, repeating his attacks on outgoing Federal Reserve Chair Jerome Powell. He revealed he had interviewed candidates for the next chair, suggesting he would choose someone "great."

His remarks are likely to worry traders, as he appeared to question the central bank's independence. Trump said that rate-setters who supported raising interest rates had engaged in acts of "disloyalty."

"We should be paying the lowest interest rate of anybody," he declared. "Without our military, you would have threats you wouldn't believe."

Trump added that central banks had become too "petrified" of high inflation, a stance he believes has sent jitters through stock markets concerned about higher interest rates.