The Latest: Greenland and threat of Trump tariffs loom over Davos

DAVOS, Switzerland (AP) — The annual meeting of The World Economic Forum attracts corporate executives, academics, philanthropists and media to the Swiss Alps town of Davos for dialogue, debate and deal-making.

The Geneva-based think tank first hosted the event in 1971 with the goal to improve European management. Beginning Tuesday, 850 CEOs and chairs of the world’s top companies are expected to be among 3,000 participants from 130 countries in the Alpine resort through Friday.

U.S. President Donald Trump’s third visit to Davos as president comes as U.S. allies worry about his ambition to take over Greenland, Latin America grapples with his efforts to reap Venezuela’s oil and business leaders and lawmakers at home express concerns about his hardball tactics toward Federal Reserve Chair Jerome Powell.

Here is the latest:

Russia’s foreign minister declared Tuesday that Denmark’s control over Greenland was rooted in the colonial past.

Speaking at a news conference in Moscow, Sergey Lavrov charged that “in principle, Greenland isn’t a natural part of Denmark,” describing it as a “colonial gain.”

He described Trump’s bid to take over Greenland as an existential challenge to NATO that would seriously test its integrity.

Lavrov also strongly denied any intentions by Russia and China to threaten Greenland, as Trump has suggested.

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Vladimir Isachenkov contributed from Moscow.

Jamey Keaten, the AP’s chief Switzerland correspondent and a longtime Davos chronicler, briefly caught up with soccer star David Beckham at Davos.

“How are you enjoying Davos?” Keaten asked as Beckham walked by.

“Amazing, thank you,” Beckham said. “Busy.”

The world’s CEOs are the least confident they’ve been in five years about future revenues, consulting firm PwC has found in a new survey.

Many of those chief executives are in Davos this week for the elite annual meeting that promotes dialogue and economic progress, even as actions by Washington have upended the global order and billionaires have reaped trillions in new wealth as the poor lag behind.

The U.S.-based PwC firm says three in ten of the corporate chiefs were confident about revenue growth in 2026, down from 38% a year ago, and 56% in 2022.

It says most struggle with turning their AI investments into solid returns, according to the survey of nearly 4,500 chief executives across 95 countries released Monday.

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Watch this AP video about the Davos economics gap

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Jamey Keaten contributed from Davos.

Ukrainian President Volodymyr Zelenskyy says he currently has no plans to travel to Davos, as he works with officials to restore power in the country after repeated Russian drone and missile barrages.

But Zelenskyy said Tuesday he could change his plans if his delegation and U.S. officials make a breakthrough at Davos in peace efforts aimed at ending the war.

“I choose the country over an economic forum. But everything can change at any moment, because it is very important to me, and to Ukrainians, to end this war,” he said.

Russia’s full-scale invasion reaches its fourth anniversary on Feb. 24.

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Kamila Hrabchuk contributed from Kyiv, Ukraine.

Chinese Vice Premier He Lifeng warned that tariff wars pose serious risks to global economic growth.

“There is no winner in the tariff wars or trade wars, which not only increase the cost of global production and trade, but also lead to the fragmentation of the global economy,” He said at Davos.

He stressed that China will continue to uphold the multilateral trading system with the WTO at its core and promote a more inclusive, effective and rules-based international economic order.

He also said China “is a trade partner rather than an adversary” with other countries.

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Olivia Zhang contributed from Beijing.

U.S. House of Representatives Speaker Mike Johnson says he hopes to “calm the waters” as Trump roils the trans-Atlantic relationship with his desire to take over Greenland.

In a speech to lawmakers at Parliament, Johnson said the U.S. and the U.K. “have always been able to work through our differences calmly, as friends. We will continue to do that.”

Speaking after Trump also attacked Britain’s decision to hand over the Chagos Islands to Mauritius, Johnson said his mission in London is to “calm the waters … continue our dialogue and find a resolution, just as we always have in the past.”

Johnson was invited to Parliament by House of Commons Speaker Lindsay Hoyle as part of events marking 250 years of American independence.

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Jill Lawless contributed from London.

The European Union’s top official on Tuesday called into question Trump’s trustworthiness, saying he had agreed last year not to impose more tariffs on members of the bloc.

“The European Union and the United States have agreed to a trade deal last July. And in politics as in business, a deal is a deal. And when friends shake hands, it must mean something,” European Commission President Ursula von der Leyen said.

In a speech at the forum, Von der Leyen said Trump’s planned new tariffs over Greenland “are a mistake especially between long-standing allies.”

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Lorne Cook contributed from Brussels.

Kremlin spokesman Dmitry Peskov on Tuesday confirmed presidential envoy Kirill Dmitriev “has plans to meet with some representatives of the American delegation” in Davos.

Peskov’s remarks followed media reports saying Dmitriev intends to meet with U.S. envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner as part of the U.S.-led effort to end the nearly four-year war in Ukraine.

Peskov refused to name specific people Dmitriev is planning to meet in Davos, saying only that it will happen “on the sidelines” of the forum “these days, today, tomorrow.”

Dmitriev earlier on Tuesday said on social media platform X that he arrived in Davos.

Asked about whether ending the war in Ukraine or other issues were on Dmitriev’s agenda, Peskov said Dmitriev’s main focus is “trade, economic, and investment cooperation,” but “at the same time, Kirill Dmitriev is transmitting information to and from both sides regarding the peace process in Ukraine.”

Separately, the Kremlin spokesman said Russia has not received an invitation to a meeting in Paris on Thursday, which was referenced in a text message from French President Emmanuel Macron that Trump posted earlier Tuesday.

In the message, Macron suggested a meeting of members of the Group of Seven industrialized democracies in Paris after the Davos gathering. The message also suggested inviting Denmark, Ukraine and Russia.

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Dasha Litvinova contributed to this report.

Newsom called Europe’s reaction to Trump “pathetic” and “embarrassing” and urged European leaders to unite and stand up to the United States.

“It is time to get serious, and stop being complicit,” Newsom told reporters at Davos.

The California governor also decried the chasm between what Europeans are saying in public to Trump versus what they say privately among themselves.

“This guy’s playing folks for fools,” Newsom said. “I mean, everybody’s talking behind his back. They’re laughing at him, and meanwhile, they’re sucking up to him.”

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Kostya Manenkov reported from Davos.

Trump’s “Board of Peace,” initially seen as a mechanism focused on ending the Israel-Hamas war in Gaza, is sure to be widely discussed along the sidelines at Davos.

But recent invitations sent to dozens of world leaders show that the body could have a far broader mandate of other global crises, potentially rivaling the United Nations’ Security Council.

Questions abound about the board’s mandate and decision-making processes.

Trump says the body would “embark on a bold new approach to resolving global conflict,” an indication that the body may not confine their work to Gaza.

The panel was part of Trump’s 20-point ceasefire plan that stopped the war in Gaza in October. Many countries, including Russia, said they received Trump’s invitation and were studying the proposal.

France said it does not plan to join the Board of Peace “at this stage.”

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Samy Magdy contributed from Cairo.

California Gov. Gavin Newsom slammed Europe’s response to Trump on Tuesday.

Newsom told Europeans to stand up to Trump for the U.S. president’s tariff threats over support of Greenland while speaking on the sidelines of the economic forum in Davos, Switzerland.

“Have a backbone,” Newsom said.

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Kostya Manenkov reported from Davos.

The crisis over Greenland’s sovereignty is sure to loom large over Davos.

Currently, European leaders are mulling their next steps after Trump doubled down on threats to take over the semi-autonomous Danish territory.

Trump noted the Europeans’ resistance, telling reporters Monday night, “Let’s put it this way: It’s going to be a very interesting Davos.”

Denmark’s Minister for European Affairs, Marie Bjerre, reacted early Tuesday, calling the potential tariffs “deeply unfair” and saying that Europe needs to become even stronger and more independent, while stressing at the same time there there is “no interest in escalating a trade war.”

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Kirsten Grieshaber contributed from Berlin.

Trump early Tuesday posted some provocatively doctored images on social media.

One showed him planting the U.S. flag next to a sign reading “Greenland, U.S. Territory, Est. 2026.”

The other showed Trump in the Oval Office next to a map that showed Greenland and Canada covered with the U.S. Stars and Stripes.

An official close to Emmanuel Macron said a private message shared by Trump “shows that the French President, both in public and in private, takes the same views.”

Trump posted a text message Tuesday from Macron in which the French president suggested a meeting of members of the Group of Seven industrialized democracies in Paris after the Davos gathering. The message also suggests inviting Denmark, Ukraine and Russia.

The message shared by Trump is genuine, the French official said.

On Greenland, France considers respect for the sovereignty and territorial integrity of states is “non-negotiable,” said the official, who spoke anonymously in line with the customary practices of the French presidency.

Concerning Macron’s offering to organize a meeting of members of the Group of Seven most advanced economies in Paris on Thursday, the French presidency wants to make “a constructive moment that contributes to dialogue and cooperation,” the official added without further comments about Macron’s suggestion he could invite Russia.

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Sylvie Corbet contributed from Paris.

An official close to French President Emmanuel Macron said tariffs threats are “unacceptable and inefficient” after Trump threatened 200% tariffs on French wine and Champagne over Paris declining his invitation to join the Board of Peace.

“Tariffs threats to influence our foreign policies are unacceptable and inefficient,” said the official, who spoke anonymously in line with the customary practices of the French presidency.

Macron is expected to speak Tuesday at Davos.

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Sylvie Corbet contributed from Paris.

European markets opened sharply lower on Tuesday and U.S. futures fell further as tensions rose over Greenland.

Benchmarks in Germany, France and Britain fell about 1%. The future for the S&P 500 lost 1.5% and the Dow future was down 1.4%.

With U.S. trading closed Monday for a holiday, financial markets had a relatively muted response to Trump’s threat to put a 10% extra tariff on exports from eight European countries that have opposed his push to exert control over Greenland.

Jonas Golterman of Capital Economics described the situation as a lose-lose for the U.S. and the targets of Trump’s anger.

“It certainly fells like the kind of situation that could get worse before it gets better,” Golterman said.

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Elaine Kurtenbach contributed from Bangkok.

The British government on Tuesday defended its decision to hand sovereignty the Chagos Islands to Mauritius after Trump attacked the plan, which his administration had previously supported.

Trump said relinquishing the remote Indian Ocean archipelago, home to a strategically important U.S. naval and bomber base, was an act of stupidity that shows why he needs to take over Greenland.

Trump’s speech Wednesday at Davos is highly anticipated and likely to include mentions of Greenland. Discussion of the Chagos Islands may now rise up the agenda at the Swiss Alps forum.

Read more here about the Chagos Islands.

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Jill Lawless contributed from London.

President Abdel-Fattah el-Sissi of Egypt is traveling Tuesday to attend the World Economic Forum, his office said in a statement.

The Egyptian leader will meet with U.S. President Donald Trump to discuss “regional and international developments of common interest,” el-Sissi’s office said.

Trump has invited el-Sissi to join a proposed “Board of Peace” to oversee the future of Gaza, but the Egyptian leader has yet to comment on the invitation. Egypt is a mediator in the Israel-Hamas ceasefire deal in Gaza, along with the U.S. Qatar and Turkey.

Read more here about the “Board of Peace.”

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Samy Magdy contributed from Cairo.

U.S. Treasury Secretary Scott Bessent on Tuesday said America’s relations with Europe remain strong and urged trading partners to “take a deep breath” and let tensions over new Trump administration tariff threats over Greenland “play out.”

“I think our relations have never been closer,” he said, speaking on the sidelines of the World Economic Forum meeting.

On Saturday, Trump announced a 10% import tax starting in February on goods from eight European nations that have rallied around Denmark in the wake of his stepped up calls for the United States to take over the semi-autonomous territory of Greenland.

Trump has insisted the U.S. needs the territory for security reasons against possible threats from China and Russia.

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Jamey Keaten reported from Davos.

U.S. Treasury Secretary Scott Bessent said the worst thing another country can do is escalate against the United States.

“What President Trump is threatening on Greenland is very different than the other trade deals,” he said. “So I would urge all countries to stick with their trade deals.”

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Jamey Keaten reported from Davos.

This year’s edition of the World Economic Forum will be the first not headed by forum founder Klaus Schwab. The board gave its unanimous support in 2025 for an independent investigation of Schwab following a report by The Wall Street Journal.

The report cited a whistleblower letter alleging financial and ethical misconduct by Schwab and his wife, Hilde. The allegations emerged two days after the WEF announced Schwab had retired as chairman “with immediate effect.”

He was succeeded by interim co-chairs Larry Fink, chairman and CEO of New York-based investment management company BlackRock, and Andre Hoffmann, the vice chairman of Swiss pharmaceuticals company Roche Holdings.

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AP World Economic Forum: https://apnews.com/hub/world-economic-forum