US President Donald Trump’s threat to impose tariffs on Europe if it does not cede Greenland to the United States has sparked concern, with World Economic Forum (WEF) President and CEO Borge Brende saying he expects tough talks between the countries at Davos this week.
“I think there will be quite tough dialogues here, and frank dialogues, as they say in diplomacy, around those topics, including tariffs,” Brende told CNBC-TV18, noting that the tariff issue has persisted for almost a year between the US and different stakeholders.
With around 850 of the world’s top CEOs attending Davos this year, he said Trump remains keen on attending the forum to directly engage global business leaders.
The comments come after Trump on Saturday announced sweeping tariffs on eight European nations — Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain — all of which agreed to contribute personnel to a NATO exercise on Greenland. Trump has linked the move to rising geopolitical risks around Greenland while reviving his longstanding interest in acquiring the territory from Denmark.
Brende said Europe was aware of its position between major powers and would keep its channels open with both the US and China. “I think that Europe is very conscious about not ending up between the rock and the hard place,” he said, adding that Europe will continue its dialogue with the US because it remains an important export market.
He also pointed to Europe’s efforts to deepen collaboration with China, noting that German Chancellor Frederick Merz will head to China right after Davos to meet Xi Jinping. He said it reflects a “new context” in which global business operates, and that the contours of a different way of doing business are now emerging.
It is pertinent to note that, in recent weeks, Trump has ordered a special operation to seize Venezuelan President Nicolás Maduro, claimed Ukraine is more reluctant to pursue peace than Russia, and threatened to attack Iran if protests are repressed.
Also Read: Davos 2026: Geoeconomic tensions top business risk for 2026, says WEF’s Saadia Zahidi
When asked about economic growth amid global uncertainty, Brende said that last year he had feared geopolitical turmoil would seriously impact global growth. “But the economy has been very, very resilient, and we do still expect more than 3% economic growth this year,” he said.
However, he warned that any escalation of conflicts could derail prosperity, adding that frontier technologies such as artificial intelligence (AI) have become a new engine of growth.
Last year alone, around $1.5 trillion was invested in AI and frontier technology, he noted.
Discussing record sovereign debt levels among nations, Brende noted, “We have not seen this kind of global debt on governments since 1945,” with many countries now spending heavily on interest payments. He said the only sustainable way out of the debt cycle is higher global growth, adding that defence spending — while unfortunate due to global mistrust — historically has contributed to technological advances.
AI bubble concerns and bilateral trade deals
On technology markets and concerns of an AI bubble, Brende said a bubble is the least likely scenario, but cannot be fully ruled out, as the US has invested heavily in the sector, while returns remain uncertain. Even if valuations correct, the underlying technologies will remain transformative.
“Even if there is a correction in the market, I think artificial intelligence and frontier technologies will be there, and will shape this century,” he said, comparing it to earlier bubbles in railways, electricity and the dot-com era.
On trade relations, Brende noted that the multilateral system has changed and countries increasingly prefer bilateral and plurilateral deals. “The trade multilateral system has changed… countries now are rushing towards bilateral agreements,” he said. While trade in manufactured goods has slowed, digital trade and services have continued to grow, he added.
Brende was bullish on India’s growth momentum. “It has been quite impressive what kind of economic reforms have been pushed through in the last months in India,” he said, adding that India could contribute as much as 20% of overall global growth this year. He said India is now among the fastest-growing major economies and hoped New Delhi and Washington could move towards a trade agreement this year.
