Trash talk, a walkout and a disinvitation: The drama behind the scenes at Davos

Donald Trump set a trash-talking tone with his hour-long speech at the World Economic Forum in Davos, taking aim at targets both familiar and new, adopting a mocking tone as he lobbed his barbs.

In an often rambling address, the US president lashed out at NATO and suggested allies in Europe would “all be speaking German and little Japanese” if it weren’t for the US.

His remarks about one of the US’s staunchest allies, Canada, claiming it “lives because of the United States”, and its leader Mark Carney drew gasps from the crowd.

“Remember that, Mark, the next time you make your statements,” Trump said. A day earlier, Carney had told the Davos set that the era of US hegemony could be over, calling it “a rupture”.

Such was the breadth of Trump’s targets that The New York Times felt the need to compile a list of “everything (and everyone) Trump assailed at Davos”.

But the president isn’t the only American who has been ruffling feathers in Switzerland, where thousands of political and business leaders have gathered. It’s thick with celebrities, too, including singer Katy Perry alongside her new partner and former Canadian prime minister Justin Trudeau, actor Matt Damon and soccer legend Sir David Beckham.

European Central Bank president Christine Lagarde abruptly walked out of an invitation-only sit-down dinner in Davos after US Commerce Secretary Howard Lutnick started laying into Europe, Bloomberg reported, citing people familiar with the matter.

The VIP event on the sidelines of the forum on Tuesday evening was attended by more than 100 people and featured Lutnick as the final speaker, said the people, who declined to be identified so they could discuss private matters.

Lutnick’s speech to the dinner guests belittled European economies and their lack of competitiveness compared to the US’s prowess. It made several Europeans in the room uncomfortable and, as the criticism escalated, Lagarde was seen leaving, the people said.

The US official was described as having a bad seat at the back of the room and his remarks were met with some booing, one person said. US Trade Representative Jamieson Greer was placed at the head table, which also featured BlackRock chief executive officer Larry Fink.

Lagarde is a former French finance minister and also headed the International Monetary Fund for most of Trump’s first term. She started warning in early 2024 that his return to the White House could spell trouble for Europe.

The ECB declined to comment.

A spokesperson for the US Commerce Department said that no one left hastily during Lutnick’s three-minute speech and that only one person booed, adding that it was former US vice president Al Gore.

“I sat and listened to his remarks,” Gore said in a statement provided by a spokesperson. “I didn’t interrupt him in any way. It’s no secret that I think this administration’s energy policy is insane. And at the end of his speech, I reacted with how I felt, and so did several others.”

One European CEO and a euro-zone official member, both speaking on condition of anonymity, said Lagarde was right to walk out of that dinner and that Europe needed to start standing up for itself.

Lagarde on Wednesday morning spoke with RTL radio, highlighting that “we are seeing the curtain come up on a new world order”.

“This ... must lead us to deeply revise the way we organise our economy in Europe, in the way we build ties with other countries in the world who play by the same rules as us,” she said.

California Governor Gavin Newsom, meanwhile, said he was denied entry to an event at the sidelines of Davos after pressure from the White House, escalating a fight between Trump and one of his most prominent Democratic critics.

Newsom had been invited to speak at an event at USA House, a venue showcasing American companies at Davos, his office said in a post on X. USA House “under pressure from the White House and State Department” restricted his entrance to the area, according to his office.

“No one in Davos knows who third-rate governor Newscum is or why he is frolicking around Switzerland instead of fixing the many problems he created in California,” White House spokeswoman Anna Kelly said in a statement.

USA House, located in a church just outside the security perimeter in Davos, is hosting panels with CEOs and cabinet officials throughout the week.

Newsom had planned to respond to Trump’s Davos address during the media event at USA House, his office said. USA House officials told the governor’s staff they had cancelled the event shortly before it took place, according to Newsom’s office.

Newsom, who’s widely seen as a presidential contender in 2028, has tried to position himself as an alternative to Trump in Davos, igniting a war of words with the White House. The Democratic governor has urged leaders at Davos to push back against Trump’s now-wavering push to acquire Greenland, calling their responses “pathetic”.

“I should have brought a bunch of kneepads for all the world leaders,” he said earlier in the week. He also attended a speech by US Treasury Secretary Scott Bessent, where Newsom was seen scoffing at the secretary’s remarks.

The Trump administration has clapped back. During a speech on Wednesday, Bessent said Newsom was “the only Californian who knows less about economics than Kamala Harris”.

Even Trump took note of his rival’s presence in Davos. Trump acknowledged the California governor during his speech, after Newsom was spotted watching it while leaning against a wall.

“I know Gavin was here. I used to get along so great with Gavin when I was president,” Trump said, referring to his first term. “Gavin’s a good guy.”

Trump was less diplomatic toward some of his other targets. He said Greenland – which he repeatedly referred to as Iceland during the speech – was a “piece of ice” and “cold and poorly located”.

He told the audience of mostly European business and political leaders that most of their countries “don’t even work” without the US, and that if Americans had not come to their defence in World War II, they would “all be speaking German and little Japanese”.

Trump mocked French President Emmanuel Macron for the meme-inspiring Top Gun-style aviator sunglasses he wore during his own speech at Davos the day before.

“I watched him yesterday, with those beautiful sunglasses. What the hell happened?” Trump said. Macron’s office has said the choice to wear the dark, reflective sunglasses during his speech, which took place indoors, was to protect his eyes because of a burst blood vessel.

Other targets included some old favourites, Somali immigrants and the US Federal Reserve – for making decisions about interest rates decisions without first checking with him.

He also clipped both Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin, whom he said would be “stupid” if they could not reach a peace deal.

“I don’t want to insult anyone,” Trump then added, prompting laughter from at least one audience member.

With Bloomberg

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