Trump's Davos Show: A Look at His Bold Claims and Mixed Economic Reality

A High-Profile Appearance

President Donald Trump's appearance at the World Economic Forum in Davos was anything but low-key. He didn't hold back, criticizing Europe's military and economic situation. He even claimed that some parts of Europe are not recognizable anymore.

"Europe is destroying itself," Trump said, questioning its support for Ukraine.

NATO and Greenland

Trump addressed concerns about a potential conflict with NATO over Greenland. He assured that he wouldn't use force to take the territory but insisted on seeking ownership. He argued that the U. S. is the only country that can guarantee Greenland's security.

Later, he announced a "framework" for a NATO agreement regarding Greenland and the Arctic, backing off his threat to impose tariffs on eight European countries.

Criticism of NATO Allies

His comments about NATO were particularly striking. He told the mostly European audience that the U. S. has gained nothing from NATO except protection from the Soviet Union and Russia. He also questioned whether NATO allies would support the U. S. in return.

NATO has only invoked its Article 5 guarantee of collective defense once, after the 9/11 attacks, and Denmark lost more troops in Afghanistan than any other ally.

A Shot at Canadian Prime Minister

Trump also took a shot at Canadian Prime Minister Mark Carney, saying Canada isn't grateful enough for U. S. support. Carney had warned against "great powers" abandoning rules and values, which seemed to resonate more with European leaders than Trump's criticisms.

The EU's legislative body halted approval of a trade agreement with the U. S. shortly after Carney's speech.

Economic Claims and Reality

On the economic front, Trump boasted about the U. S. economy, claiming "extraordinarily high economic growth" and "virtually no inflation."

However, the numbers tell a different story:

• Job growth slowed dramatically last year, with only 584,000 jobs added, far less than the previous four years under Joe Biden.
• U. S. productivity grew more than expected, and GDP increased at an annual rate of 4.3% in the third quarter of 2025, the largest quarterly increase since 2023.
• Consumer spending has been driven by wealthier Americans, while lower- and middle-income households have cut back due to higher living costs.
• Prices rose 2.7% in December from the previous year, above the Federal Reserve's 2% target but much better than the 9% inflation post-pandemic.
• Trump also took credit for record-breaking highs in the stock market, with the S&P 500 and Dow reaching all-time highs. However, the S&P 500's 13% gain during Trump's second term doesn't stand out compared to market gains during other recent presidents' first years.