World Economic Forum 2026: Trump, Carney, and the End of Global Cooperation | US Daily Letter

Inside the Week That Revealed the New Reality of Global Power

DAVOS, Switzerland — The 56th World Economic Forum wrapped up this morning in the Swiss Alps, and the contrast between what this gathering is supposed to be and what it actually became couldn’t be sharper.

Davos has always styled itself as the temple of global cooperation—a place where billionaires, heads of state, and thought leaders convene under the pretense of solving the world’s problems together. The theme this year was “A Spirit of Dialogue.” The promise was constructive, forward-looking conversation.

What we got instead was a funeral for the old world order, delivered by two men standing on the same stage 24 hours apart.

On Tuesday, Canadian Prime Minister Mark Carney told the room—politely but firmly—that the rules-based international system is dead. On Wednesday, U.S. President Donald Trump confirmed it, demanding Greenland while threatening NATO allies and calling climate policy “the greatest hoax in history.”

If you want to understand where the world is headed, those two speeches tell you everything you need to know.

Carney: The Autopsy

Mark Carney didn’t come to Davos to make friends. He came to name reality.

The former Bank of England governor and newly minted Canadian Prime Minister stood before an audience of global elites and delivered what may be the most significant speech of his career—a clear-eyed assessment that the U.S.-led, rules-based international order is over, and middle powers like Canada must stop pretending otherwise.

“We are in the midst of a rupture, not a transition,” Carney said. “The old order is not coming back.”

He didn’t mince words. For decades, countries like Canada participated in what he called a “useful fiction”—the idea that American hegemony provided global public goods like open sea lanes, stable financial systems, and collective security in exchange for deference to U.S. leadership. But that bargain, Carney argued, no longer works.

“You cannot live within the lie of mutual benefit through integration when integration becomes the source of your subordination.”

The line drew applause. It also drew blood.

Carney described how great powers have weaponized economic integration—using tariffs as leverage, financial infrastructure as coercion, and supply chains as vulnerabilities to exploit. The multilateral institutions middle powers relied on—the WTO, the UN, the COP climate talks—have been “greatly diminished.” The architecture of collective problem-solving is crumbling.

His solution? Middle powers must band together.

“If you’re not at the table, you’re on the menu,” Carney warned. “When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered. We compete with each other to be the most accommodating. This is not sovereignty. It is the performance of sovereignty while accepting subordination.”

Instead, Carney called for middle powers—Canada, Australia, South Korea, European nations, and others—to form flexible coalitions around shared interests. Not naive multilateralism. Not reliance on dying institutions. But practical, issue-by-issue partnerships that pool resources and create leverage against larger powers.

“The power of legitimacy, integrity, and rules will remain strong—if we choose to wield them together.”

It was a speech that acknowledged hypocrisy in the old system while mourning its loss. It was a call to arms disguised as diplomacy. And it left the room buzzing.

Canada’s former UN ambassador Bob Rae said he’d never seen a global reaction to a speech like this. International media called it a “stark contrast” to Trump’s address. Analysts described it as a “major departure” from Canada’s usual deference to Washington.

And Trump? He noticed.

Trump: The Confirmation

Twenty-four hours later, Donald Trump took the same stage and proved every word Carney had said.

The President of the United States—delayed after a minor electrical issue forced Air Force One to turn back and switch planes—arrived in Davos to a packed Congress Hall. Billionaires jockeyed for seats. Michael Dell weaved through the crowd. Marc Benioff, Salesforce CEO and WEF board member, pushed his way to the front. Even Blackstone’s Steve Schwarzman had to wait in line like everyone else.

They came to hear what Trump would say. And he did not disappoint.

Trump opened by declaring it was good to see “so many friends and some enemies,” drawing nervous laughter. He then spent the next hour delivering a speech that oscillated between self-congratulation, threats, confusion, and mob-like ultimatums.

He called himself “the most successful president” and claimed people were “doing very well and are happy with me”—prompting a mix of laughter and awkward silence.

He demanded NATO allow the U.S. to take Greenland from Denmark, calling it “a piece of ice” that America needs for national security. He insisted Greenland is “actually part of North America” and therefore “our territory.”

Then came the line that will define the speech: “We want a piece of ice for world protection, and they won’t give it. You can say yes, and we will be very appreciative. Or you can say no, and we will remember.”

It was a threat delivered with a smile. A Goodfellas-style ultimatum wrapped in the language of dealmaking. The room went quiet.

Trump did say—for the first time—that he wouldn’t use force to take Greenland, which prompted a collective sigh of relief. But the damage was done. The message was clear: America will take what it wants, and allies can either comply or face consequences.

He criticized Europe, saying parts of the continent had become “unrecognizable.” He called former Swiss President Karin Keller-Sutter “difficult,” saying she “rubbed me the wrong way.” He appeared to confuse Greenland with Iceland at one point. He touted energy deals with Venezuela and boasted about U.S. oil and gas production.

And he dismissed climate policy as “the Green New Scam,” saying windmills “destroy your land” and claiming Europe’s pursuit of renewable energy led to catastrophic collapse.

By the time the fireside chat with WEF President Børge Brende began, some audience members had already started drifting out.

The Collision

Here’s what makes these two speeches so significant: They weren’t just different in tone. They were fundamentally opposed visions of how the world works.

Carney described a world where middle powers must band together to resist coercion and preserve sovereignty through collective action. Trump described a world where might makes right, where alliances are transactional, and where America will do what it wants regardless of what allies think.

Carney argued for “the power of legitimacy, integrity, and rules” wielded collectively. Trump argued that NATO should step aside while the U.S. annexes territory from a NATO ally.

Carney called for strategic autonomy grounded in shared values. Trump demanded Greenland while threatening retaliation against anyone who objects.

One speech diagnosed the death of the rules-based order. The other drove the final nail into its coffin.

What Europe Heard

European leaders in the room heard Trump’s speech as confirmation of their worst fears.

French President Emmanuel Macron, who spoke earlier in the week, had already warned that “we are living through a profound global shift” and called for Europe to defend “effective multilateralism” against “the brutalization of the world.”

European Commission President Ursula von der Leyen reminded Trump that “a deal is a deal,” referencing the July 2025 trade agreement between the U.S. and EU. “When friends shake hands, it must mean something.”

NATO Secretary General Mark Rutte, speaking at Davos, emphasized the alliance’s importance while carefully avoiding direct conflict with Trump.

But the subtext was unmistakable: Europe is terrified that American reliability—already shaky—is evaporating entirely.

A “No Kings” sign appeared in Davos ahead of Trump’s visit, a symbolic protest against what many see as imperial overreach. The reaction from European officials ranged from diplomatic silence to barely concealed anger.

Denmark, which controls Greenland as a semi-autonomous territory, responded with near-unanimous rejection. Greenland’s 57,000 residents have made clear they have no interest in becoming American. And Trump’s threat to “remember” those who say no felt less like diplomacy and more like extortion.

What the Rest of the World Saw

Over 60 heads of state attended Davos this year—one of the highest-level gatherings in the forum’s history. Leaders from G7, G20, and BRICS countries all watched these speeches.

And they drew their own conclusions.

Chinese Vice Premier Ding Xuexiang emphasized that China has put domestic demand at the top of its economic agenda in 2026, focusing on consumption while maintaining production strength. The message: China will look inward and prioritize resilience over integration.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani spoke about reshaping the Middle East’s security architecture, saying “the moment has come for the region to come together” rather than rely on external powers.

Morocco’s Head of Government Aziz Akhannouch touted Morocco’s position as a “crossroads between Europe, Atlantic, and African countries”—emphasizing independence and economic self-reliance.

The pattern is clear: Countries are hedging. They’re diversifying. They’re building strategic autonomy. They’re doing exactly what Carney said they must.

Because if Trump’s speech taught them anything, it’s that the old guarantees are gone.

The Davos Paradox

Here’s the irony: Davos 2026 was supposed to be about cooperation. The theme was “A Spirit of Dialogue.” The stated goals were addressing global challenges through collaboration, deploying innovation responsibly, and building prosperity within planetary boundaries.

Instead, it became a showcase for fragmentation.

Trump’s speech dominated headlines, but it was Carney’s that will shape policy. Leaders left Davos with a clear understanding: The world is reorganizing. Global cooperation is shifting toward selective alliances. The rules that governed the post-1945 order are dead, and no one—least of all the United States—is pretending otherwise.

The Global Cooperation Barometer 2026, released during the forum, confirmed what everyone already knew: Trust in multilateral institutions is eroding. Geopolitical fragmentation is accelerating. Countries are prioritizing national security over global integration.

And the man leading that charge is the President of the United States.

What Comes Next

This isn’t the beginning of a new world order. It’s the messy middle of a transition no one fully understands yet.

Carney’s vision—middle powers banding together in flexible coalitions—is compelling in theory. Whether it works in practice depends on whether countries like Canada, Australia, South Korea, and European nations can actually coordinate when their interests diverge.

Trump’s vision—American unilateralism backed by economic and military might—is simpler but more fragile. It assumes allies will accept subordination indefinitely. History suggests they won’t.

What’s clear is that the old system is gone. The fiction of rules-based order has been replaced by the reality of power-based order. And the question now isn’t whether countries will adapt—it’s how.

Some will align with the United States and accept whatever terms Washington offers. Some will build strategic autonomy and resist coercion. Some will hedge, playing both sides and hoping to avoid getting crushed.

But no one—not the billionaires in Davos, not the heads of state, not the think tank experts—believes the world is going back to what it was.

The Bottom Line

Two speeches. Two visions. One collapsing order.

Mark Carney told the global elite that the rules-based system is dead and middle powers must act together to survive. Donald Trump confirmed it by threatening NATO allies, demanding Greenland, and making clear that American power will not be constrained by alliances, norms, or institutions.

If you’re a middle power, you heard Carney and started making calls to allies.

If you’re a great power, you heard Trump and started recalculating your leverage.

If you’re a global citizen, you heard both and realized the world just got a lot more dangerous.

Davos 2026 wasn’t about dialogue. It was about declaring whose power matters—and whose doesn’t.

The snow is melting in the Swiss Alps. The private jets are flying home. The champagne glasses are being cleared.

And the world that emerges from this week looks nothing like the one that arrived.

—US Daily Letter Global Desk, reporting from Davos