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Davos shows strains in the global economic order
Summary
At Davos, leaders faced signs of a changing global order after U.S. President Donald Trump said he would not use force over Greenland and dropped related tariff threats; Prime Minister Carney warned the world is "in the midst of a rupture, not a transition."
Content
This year's World Economic Forum in Davos highlighted tensions in long-standing trade and security arrangements. Leaders debated how economic integration can be used as a tool of state power. Some Canadian officials flagged new trade opportunities with China while others raised concerns about corporate moves and technology transfers. Markets reacted to public statements from world leaders and policy shifts.
Key developments:
- U.S. President Donald Trump said he would not deploy military force over Greenland and later dropped tariff threats tied to the dispute.
- Prime Minister Carney said the world is "in the midst of a rupture, not a transition," and warned about economic coercion by major powers.
- European Union heads of state called an emergency meeting in Brussels in response to recent U.S. threats.
- Canada's agriculture minister said there are "lots of opportunities" for Chinese investment under new trade agreements.
- Lenders to Ottawa-based Telesat accused the company of moving value out of reach of creditors by shifting its low-Earth-orbit satellite business.
- Anthropic CEO Dario Amodei warned that U.S. approval for Nvidia to ship advanced chips to China could have "incredible national security implications," and global markets rose after the tariff threat was dropped, with the Canadian dollar trading at about 72.34 U.S. cents.
Summary:
The exchanges at Davos signaled pressure on the post‑war trade and security framework, prompting emergency consultations among European leaders and renewed attention to trade diversification. Prime Minister Carney is scheduled to travel to India to begin formal economic partnership talks, and Canada faces upcoming USMCA renegotiations in July that are likely to shape its trade approach.
