United States President Donald Trump has described America as the “economic engine on the planet,” while criticising Europe’s current trajectory, in remarks delivered at the World Economic Forum in Davas, Switzerland on Wednesday.
Speaking before global political and business leaders gathered for the annual summit, Trump asserted that the prosperity of the United States has direct implications for the rest of the world.
“The USA is the economic engine on the planet. And when America booms, the entire world booms. It’s been the history,” Trump said during his address, which came amid heightened tensions between Washington and several European allies over his administration’s stated interest in acquiring Greenland.
The Greenland issue has dominated discussions at this year’s forum, with European leaders pushing back against what they perceive as an aggressive stance by the Trump administration toward the autonomous Danish territory. The controversy has cast a shadow over transatlantic relations and sparked debate about sovereignty, international norms, and the future of Western alliances.
Trump’s comments on Europe were notably critical, reflecting a tone of disappointment rather than diplomatic caution. “I love Europe, and I want to see Europe go good, but it’s not heading in the right direction,” the US president said, adding that parts of the continent were “not recognizable.”
The remarks appeared aimed at both economic policy and broader political and social developments across European nations, though Trump did not specify which countries or policies he was referring to. His assessment is likely to provoke debate among European officials already navigating complex challenges including sluggish economic growth, energy security concerns, migration pressures, and questions about defence spending and regional cohesion.
The World Economic Forum, held annually in the Swiss alpine resort town of Davos, brings together heads of state, corporate executives, economists, and civil society leaders to discuss pressing global issues. The 2025 edition has been marked by discussions on trade policy, technological disruption, climate action, and geopolitical realignment.
Trump’s presence at the forum signals his administration’s intent to shape the global economic agenda and assert American leadership on the world stage. His remarks echo longstanding themes from his political career, including scepticism of multilateral institutions, emphasis on national sovereignty, and calls for European nations to shoulder greater responsibility for their own security and prosperity.
The United States remains the world’s largest economy by nominal gross domestic product, with a GDP exceeding $27 trillion. American financial markets, technological innovation, and consumer demand continue to exert significant influence on global economic conditions. However, the relationship between US economic performance and worldwide growth is a subject of ongoing debate among economists, particularly as emerging markets and regional blocs gain prominence.
Trump’s comments on Europe come at a time when the continent faces a range of economic headwinds. Growth has been uneven across the European Union, with Germany—the bloc’s largest economy—experiencing stagnation in key industrial sectors. Energy costs remain elevated following disruptions linked to geopolitical conflicts, and questions persist about the long-term competitiveness of European industries in the face of competition from the United States and China.
Additionally, political fragmentation and the rise of populist movements in several member states have complicated efforts to forge unified policy responses to shared challenges. The European Union has also been grappling with the economic and social ramifications of mass migration, debates over fiscal policy, and the costs associated with climate transition goals.
The Greenland controversy, meanwhile, has introduced a fresh source of friction into US-European relations. Greenland, an autonomous territory within the Kingdom of Denmark, holds strategic importance due to its geographic position, natural resources, and potential military value in the Arctic. Trump’s administration has reportedly expressed interest in acquiring or increasing American influence over the island, a notion firmly rejected by Danish officials and met with alarm by other European governments.
The dispute has raised broader questions about the boundaries of diplomatic engagement, respect for sovereignty, and the tone of relations between the United States and its traditional allies. European leaders attending the Davos forum have used the occasion to reaffirm commitments to multilateralism and the rules-based international order, though they have also acknowledged the need to adapt to shifting geopolitical realities.
Trump’s speech at Davos underscores his administration’s approach to foreign policy, which emphasises transactional relationships, direct communication, and a willingness to challenge established norms. While his rhetoric resonates with some audiences—particularly those who favour a more assertive American role on the global stage—it has also drawn criticism from those who fear it undermines alliances and emboldens adversaries.
The World Economic Forum has historically served as a platform for dialogue and cooperation among nations, even amid disagreement. This year’s gathering, however, has highlighted the depth of divisions over trade, security, and governance, with Trump’s remarks likely to fuel further debate about the direction of Western leadership and the future of transatlantic partnership.
