Trump's Influence Dominates Davos Agenda

The World Economic Forum's annual meeting in Davos has concluded, leaving global leaders and business executives to digest a week dominated by U.S. President Donald Trump's unpredictable influence on geopolitics, trade, and energy policy.

Here are the key takeaways from the discussions.

Geopolitical Tensions Flare Over US Policy

Europe’s relationship with Washington was a central theme, with many leaders finding the Trump administration's approach both rude and offensive, even while acknowledging some of the issues raised were legitimate.

The U.S. president's claim to Greenland crossed Europe's territorial red lines, and the subsequent European resistance was seen as a key factor in his decision to back down. The episode has severely rattled trust in the transatlantic alliance, prompting European Union officials to seek ways to improve the speed of their own decision-making processes. As one EU official noted, "We are probably too slow."

While initially overshadowed, Ukraine became a focus when President Volodymyr Zelenskiy arrived for talks following Trump's Greenland announcement. Despite discussions involving U.S., Ukrainian, and Russian officials, a peace deal remains elusive, with Zelenskiy confirming that territorial issues are unresolved.

In a sign of the Trump administration's agenda-setting power, Russian President Vladimir Putin's envoy, Kirill Dmitriev, came to Davos for talks with U.S. officials. This marked the first visit by a Russian official since the 2022 invasion of Ukraine. Dmitriev met with officials at the USA House without formally attending the Forum.

Speculation about a potential U.S. strike on Iran was also a prominent topic, with leaders debating the potential collapse of the regime and the subsequent fallout. Trump's unpredictability was, once again, a defining feature of the event.

Trade Fears and Market Uncertainty Deepen

Economic discussions were heavily influenced by U.S. threats to impose tariffs on European allies over the Greenland issue. This move intensified trade tensions and reinforced CEO concerns that Europe can no longer depend on the United States.

"When you talk to CEOs today, what do they want? Stability, predictability, and the rule of law. I would say it's in short supply," said Canadian Finance Minister François-Philippe Champagne during a panel on tariffs.

Trump’s actions have fueled arguments for countries and corporations to diversify their commercial relationships away from an increasingly protectionist U.S. and toward greater trade with one another.

Key topics for the financial services industry included:

• Business Growth: Firms expressed hopes for increased activity despite potential disruptions from U.S. policy, geopolitics, and new technology.

• Regulatory Concerns: JPMorgan CEO Jamie Dimon warned that a proposed cap on credit card interest rates would be an "economic disaster."

• Crypto and Blockchain: Industry executives promoted the potential of stablecoins and blockchain to disrupt finance, meeting a mix of experimental interest and caution from traditional bankers.

Investors also grappled with the broader macroeconomic outlook, questions surrounding the independence of the U.S. Federal Reserve, and fears of asset bubbles in sectors like artificial intelligence.

AI Takes Center Stage Amid Hype and Job Fears

The technology industry had a major presence in Davos, featuring rare appearances from Tesla CEO Elon Musk and Nvidia's Jensen Huang. AI startup Anthropic even set up a temporary office on the main promenade to pursue enterprise sales.

Executive sentiment has shifted significantly from the skepticism of late 2025. Business leaders are now largely putting aside concerns that AI companies are overvalued. While they acknowledge that some jobs will disappear, they believe new ones will be created. Two leaders told Reuters that AI would more likely be used as an excuse to justify layoffs rather than being the direct cause.

However, union leaders expressed fears that AI will destroy jobs and worsen inequality. They called for greater regulation and investment in training programs to manage the transition.

Energy Debate Pits Big Oil Against Renewables

After a year of Trump's presidency, "Big Oil" returned to Davos with renewed confidence. The administration's pause on wind park development and its directive for U.S. companies to increase oil drilling set the tone.

U.S. Energy Secretary Chris Wright challenged the consensus view that oil demand might peak in the next two decades, telling a panel that global production needs to more than double to meet rising energy needs. Wright also criticized Europe and California for wasting money on green energy investments. According to one oil executive, the industry welcomes the Trump administration's new narrative.

Breaking from this position, Elon Musk argued that the U.S. has the capacity to meet all its electricity needs with solar power, including the soaring demand from Big Tech's data centers.

"You could take a small corner of Utah, Nevada or New Mexico—a very small percentage of the area of the U.S.—to generate all of the electricity that the U.S. uses," Musk stated. He added, "Unfortunately, the tariff barriers for solar are extremely high and that makes the economics of deploying solar artificially high."

Defense Spending and Secret Weapons Enter the Conversation

While many were relieved after Trump stated there would be no military solution to his demands for Greenland, some executives anticipate a rise in U.S. and European defense spending, including new construction and hiring.

In a more unusual turn, Trump mentioned a secret sonic weapon that he claimed was used during the capture of Venezuela's Nicolas Maduro. He asserted that this development would force Russia and China "back to the drawing board." The Kremlin later said that Russian secret services are looking into the claim.