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Trump says Europe ‘not heading in the right direction’ as he addresses Davos summit amid standoff over Greenland

Posted By: Hemant Kumar Posted On: Jan 21, 2026Share Article
Trump says Europe ‘not heading in the right direction’ as he addresses Davos summit amid standoff over Greenland
Donald Trump

US President Donald Trump criticized Europe's direction at the World Economic Forum, attributing economic troubles to green energy policies and mass migration. He contrasted this with America's "phenomenal" economic turnaround under his administration, highlighting virtually eliminated inflation and a tariff-driven trade strategy. Trump asserted the US is the "economic engine of the planet."

US President Donald Trump on Wednesday said Europe was “not heading in the right direction,” blaming green energy policies and mass migration for the continent's economic troubles, as he addressed the World Economic Forum's annual meeting in Davos amid a deepening standoff with European governments over Greenland, which he has threatened to annex from Denmark.

“It's great to be back in beautiful Davos and to be around so many amazing business neighbours and a few enemies,” Trump said at the outset of his address, drawing laughter from the audience that included BlackRock chief executive Laurence D. Fink and World Economic Forum president Børge Brende.

Trump said he had arrived in Davos with “phenomenal news from America,” noting that he had marked one year in the Oval Office a day earlier. “The United States is in the midst of the most significant economic turnaround of our century,” he said.

Trump doubles down on threat to annex island: ‘How stupid were we to give Greenland back to Denmark'

'America, the hottest country in the world'

Claiming that inflation had been virtually eliminated under his administration, Trump said, “Just one year of my policies has resulted in virtually no inflation; no country has ever seen this before.” He contrasted his second term with the previous Democratic administration, saying, “We were a dead country under Democrats; now we are the hottest country in the world.”

Trump told the Davos audience that the US economy would grow at a much faster pace because of his tariff-driven trade strategy, pushing back against criticism that higher duties could fuel inflation or slow global growth.

He described the United States as “the economic engine of the planet,” arguing that strong domestic production and tighter border controls were restoring confidence among investors and businesses.

Much of Trump's sharpest criticism, however, was reserved for Europe. Without naming specific countries, he said the continent had been damaged by policy choices that prioritised green energy transitions and open migration over industrial competitiveness and social stability.

'Europe not recognisable anymore'

“Green energy focus, mass migration has hurt Europe,” Trump said. “Europe is not heading in the right direction.”

While adding that he did not wish to offend anyone, Trump said parts of Europe were no longer recognisable. “Don't wish to insult anyone, but some places in Europe are just not recognisable,” he said.

His comments come at a sensitive moment in transatlantic relations, with European leaders pushing back against Trump's threats to impose tariffs if the European Union retaliates against US trade measures linked to Greenland. Trump has repeatedly suggested that the United States should take control of Greenland, an autonomous territory of Denmark, a position that has been firmly rejected by Copenhagen and drawn criticism across Europe.

The Greenland issue has become a flashpoint in broader US–EU tensions, with European officials warning against any unilateral action and signalling that trade retaliation remains on the table if Washington escalates pressure.

Despite the friction, Trump sought to portray his approach as one that would ultimately benefit global growth, arguing that a stronger US economy would lift international demand. He framed his tariff policy as a tool to rebuild American manufacturing and reduce reliance on foreign supply chains, particularly in strategic sectors.

Trump's address was closely watched by global business leaders and policymakers gathered at Davos, many of whom have expressed concern about rising geopolitical fragmentation, trade disputes and the risk of economic slowdown in Europe.

The World Economic Forum's annual meeting this year has been dominated by debates over slowing growth in advanced economies, the future of global trade rules, and the political risks facing Europe, themes that Trump's remarks both reinforced and challenged from the US perspective.

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