Davos begins new era grappling with global order shaken by Trump

Attendees listen to a virtual speech delivered by U.S. President Donald Trump at the annual meeting of the World Economic Forum in Davos, Switzerland on Thursday, Jan. 23, 2025. THE CANADIAN PRESS/AP-Markus Schreiber

ZURICH -- Business and political elites head to the World Economic Forum’s annual meeting in Davos next week with its vision of a rules-based global economic order being tested to the limits.

U.S. President Donald Trump’s expected appearance in the Swiss mountain resort highlights the gap between his agenda and the consensus-driven approach of the WEF, which has faced enduring criticism that it is a talking shop of the rich.

His “America First” policy has led to trade tariffs being used as punishment, military intervention in Venezuela, the threat of taking over Greenland by force and a U.S. retreat from cooperation on climate, health and other global challenges.

The Trump administration has also threatened Federal Reserve Chair Jerome Powell with a criminal indictment, prompting many top central bankers to issue a statement defending him and central bank independence.

Dubbing its 56th edition “A Spirit of Dialogue,” the WEF’s leaders say that given the current uncertainty, getting together to map out a way forward in business and politics is crucial.

“Dialog is not a luxury, it is a necessity,” said WEF president and CEO Borge Brende, a former Norwegian minister.

But others say that with the U.S. and China leveraging power to suit national interests, the WEF risks obsolescence.

“Who is going to be making the case for the rules-based international order?” said Daniel Woker, a former Swiss ambassador and foreign relations expert.

“To be very blunt, in a system where everyone is only looking out for themselves, it has no reason to exist. It’s an event from the past.”

Davos-watchers are also looking at whether the event has lost impetus since its 87-year-old founder Klaus Schwab stepped down as chair in April.

The Geneva-based organization said in August an internal investigation had found no evidence of material wrongdoing by Schwab, after a whistleblower letter alleging misconduct. It named BlackRock CEO Larry Fink and Roche vice-chair Andre Hoffmann as interim co-chairs.

The latest forum has much to discuss, from how to handle Trump’s version of the Monroe Doctrine establishing U.S. supremacy in the Western hemisphere, to the ways artificial intelligence is changing the world.

It comes just after one of Switzerland’s worst modern tragedies, a ski resort bar fire that killed 40 people.

Oil makes comeback

In pre-event briefings, the WEF has put a brave face on the global tumult, highlighting how companies have sought to adapt to the highest U.S. tariff rates since the Great Depression and pointing to an easing of trade tensions in late 2025.

Still, a WEF survey of executives released last week showed that doing business got harder in 2025. The poll also painted a downbeat picture of cooperation on peace and security.

With several European leaders expected to attend, eyes will be on how they respond to U.S. challenges, including Trump’s threats to take over Greenland, and attacks on European efforts to regulate American tech firms.

“The politicians need to stand strong,” said Christy Hoffman, General Secretary of the UNI Global Union representing 20 million service-sector workers worldwide, urging policymakers to address how AI and new technologies impact jobs.

One feature of this year’s WEF meeting will be top oil executives eager to hear Trump promoting his energy dominance agenda, which encourages them to drill for more oil and gas while snubbing alternatives like wind and solar.

The CEOs of Exxon Mobil, Shell, TotalEnergies, Equinor and ENI are all expected after much more sporadic attendance in past years, when oil players saw the forum as anti-fossil fuel.

It remains to be seen whether China, which in recent years has sent top officials, will field a sizeable Davos presence.

By Dave Graham

(Additional reporting by Selena Li in Hong Kong and Dmitry Zhdannikov and Mark John in London; Editing by Alexander Smith)