BY EMMANUEL OGBONNA
President Donald Trump arrived in Switzerland late Tuesday after a minor electrical malfunction aboard Air Force One forced his aircraft to return to Washington and delayed his trip to the World Economic Forum by several hours, an inauspicious start to a visit already clouded by rising tensions with European allies.
The president is scheduled to address the annual gathering of political and business leaders in the Swiss Alps on Wednesday, but his appearance comes amid a deepening dispute over Greenland that threatens to overshadow his stated goal of focusing on affordability issues facing American households. Trump has alarmed European capitals in recent days by escalating demands that Denmark negotiate the transfer of the semi-autonomous Arctic territory to the United States, a proposal Danish and other European leaders have firmly rejected.
Trump has paired the demand with the threat of sweeping tariffs on Denmark and seven other allied countries, warning that import duties would begin at 10 percent as early as next month and rise to 25 percent by June if negotiations do not proceed. Economists say tariffs at that level would likely raise consumer prices and slow economic growth, potentially complicating Trump’s efforts to present himself as a champion of lower living costs at home.
The dispute has added a sharp edge to Trump’s first appearance at Davos since returning to office. European officials say the Greenland issue has become a central point of friction ahead of his speech, raising questions about whether the forum will become a stage for confrontation rather than cooperation.
According to European officials familiar with the matter, Trump also linked his hardening stance to last year’s decision by the Nobel committee not to award him the Nobel Peace Prize. In a text message circulated among officials, Trump told Norwegian Prime Minister Jonas Gahr Støre that he no longer felt “an obligation to think purely of Peace,” a remark that has further unsettled European leaders already wary of his approach.
The uncertainty surrounding Trump’s visit reflects a broader strain in transatlantic relations. U.S. Commerce Secretary Howard Lutnick, speaking Tuesday on a panel in Davos ahead of the president’s arrival, said the administration intended to deliver a blunt message to the world’s economic elite. “Globalization has failed the West and the United States of America,” Lutnick said. “It’s a failed policy.”
Trump himself struck an unpredictable note as he departed the White House on Tuesday evening. “This will be an interesting trip,” he told reporters. “I have no idea what’s going to happen, but you are well represented.”
The journey began with complications. Roughly 30 minutes after takeoff, Air Force One turned back to Washington after the crew detected a minor electrical issue. Officials said the decision was made out of an abundance of caution. Trump later switched aircraft and continued on to Switzerland, arriving hours behind schedule.
Markets reacted nervously to the renewed tariff threats and the prospect of a trade clash between Washington and its closest allies. U.S. stocks fell sharply on Tuesday, with the S&P 500 posting its steepest decline in months, while the Dow Jones Industrial Average and the Nasdaq also recorded significant losses as investors weighed the economic fallout of escalating trade tensions.
European leaders used their own Davos appearances to push back, sometimes obliquely, against Trump’s approach. French President Emmanuel Macron warned that the world was entering a period of instability marked by economic and security imbalances, urging nations to resist what he described as the temptation to accept “the law of the strongest.” Though he did not name Trump directly, the message was widely interpreted as a rebuke.
European Commission President Ursula von der Leyen was more explicit in addressing the tariff threat, warning that the European Union would respond decisively if the measures are imposed. She emphasized that any retaliation would be “unflinching, united and proportional,” and cautioned that new tariffs could undermine a U.S.-EU trade framework agreed to last summer after months of negotiation.
“The European Union and the United States have agreed to a trade deal,” von der Leyen said in Davos. “And in politics as in business, a deal is a deal. When friends shake hands, it must mean something.”
Despite the diplomatic storm, Trump has said he intends to use his keynote address to highlight domestic priorities, including housing affordability and the rising cost of living, issues that remain top concerns for many American voters. The White House has promoted the speech as an opportunity for Trump to project a populist message from a forum often criticized for its association with global elites.
Some economists, however, warn that Trump’s tariff threats could undercut that message. Scott Lincicome, a trade analyst at the Cato Institute, said unraveling last year’s trade truce with Europe could damage investor confidence, push interest rates higher and make housing even less affordable for U.S. buyers.
Trump has brushed aside warnings of retaliation from Europe, insisting that any countermeasures would be swiftly met. “Anything they do with us, I’ll just meet it,” he said in a television interview on Tuesday. “All I have to do is meet it, and it’s going to go ricocheting backward.”
Housing has become a central political issue in the United States, with home sales at their lowest level in decades as high prices and elevated mortgage rates keep many buyers sidelined. Trump has announced plans for large-scale government purchases of mortgage securities to help bring rates down and has proposed restrictions on large financial firms buying up residential properties.
Beyond trade and economics, Trump is also expected to promote a new foreign policy initiative while in Davos. The White House says he plans to convene a meeting on Thursday focused on what it calls a “Board of Peace,” a proposed body intended to oversee the end of the Israel-Hamas war in Gaza and potentially take on a broader international role.
So far, fewer than 10 leaders have agreed to participate, including several from countries with authoritarian governments. Major European powers such as Britain, France and Germany have either declined to join or remain noncommittal. Trump has suggested the board could eventually rival, or even replace, the United Nations, though he has also said he wants the U.N. to continue operating.
“I believe you’ve got to let the U.N. continue, because the potential is so great,” Trump said Tuesday, leaving open questions about how his new initiative would coexist with existing international institutions.
As Trump begins his two-day visit in Switzerland, European officials and global investors alike are bracing for what could be a volatile stretch, with the president’s remarks on Greenland, trade and globalization likely to set the tone for an already tense gathering in Davos.