Davos 2026:Trump’s Economic Nationalism vs. The Old World Order
London-UK, 18 January 2026
The Swiss Alpine resort of Davos has transformed into a high-security fortress as the 2026 World Economic Forum (WEF) officially opens today, 18 January 2026.
Under the theme “A Spirit of Dialogue,” more than 1,300 world leaders, CEOs, and academics have gathered, but the atmosphere is anything but collaborative.
The arrival of President Donald Trump with the largest U.S. delegation in history—including five cabinet members and a massive bipartisan congressional group—has set the stage for a fundamental clash between his “America First” protectionism and the fraying rules-based global order.
The U.S. Agenda: Housing and Aggressive Protectionism
White House officials have indicated that President Trump’s presence in Davos is designed to project strength.
While the official program focuses on “A Spirit of Dialogue,” the U.S. delegation, featuring Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, is here to defend a series of punchy economic policies.
Chief among them is the “Golden Dome” defense project, which Trump has used to justify his latest 10% tariff threat against eight European nations.
The administration argues that these tariffs are necessary to force concessions on Greenland and to fund a massive domestic “housing affordability” initiative.
For the first time in over five decades, a “USA House” has been established on the Davos Promenade, signaling a permanent shift away from traditional multilateralism toward a more transactional economic diplomacy.
The IMF’s “New Normal” and Geoeconomic Risk
As the forum begins, the International Monetary Fund (IMF) has released its early-year briefing, warning that “uncertainty is the new normal.”
While the IMF expects global growth to remain resilient at 3.1% for 2026, it warns that “geoeconomic confrontation” has surged to become the top global risk.
The IMF’s latest forecast projects global inflation will ease to 3.7% this year, but this stability is threatened by the potential for a full-scale trade war.
Managing Director Kristalina Georgieva noted that the “front-loading” of imports ahead of anticipated tariffs has temporarily boosted numbers, but the long-term “pass-through effects” on consumer prices could be devastating for Western households.
China’s Strategic Pivot to the Global South
In sharp contrast to the U.S. approach, China has arrived in Davos with a high-level delegation led by Vice Premier He Lifeng. Beijing is using the forum to champion “true multilateralism” and position itself as the stable alternative to U.S. volatility.
The Castle Journal exclusive department has learned that China is quietly advancing the “digital yuan” and new bilateral trade frameworks with Global South nations to bypass the U.S. dollar-dominated system.
By focusing on “openness and cooperation,” China aims to win over middle-power nations in Europe and Asia that are increasingly nervous about Washington’s tariff-driven foreign policy.
The Last-Chance Saloon for Globalism
For many seasoned attendees, Davos 2026 feels like the “last-chance saloon” to save the global economic architecture established after World War II.
The WEF’s Global Risks Report highlights that “AI anxiety” and “geopolitical tumult” are eroding the trust necessary for international trade.
Ukrainian President Volodymyr Zelenskyy is also present, seeking not just military aid but “economic security guarantees” against a backdrop of shifting U.S. priorities.
As the sun sets over the Swiss mountains tonight, the question remains: can a world divided by “aggressive nationalism” and “secretive trade blocks” still find a common path for growth?
The Castle Journal will continue to monitor the closed-door meetings in Davos, where the true future of the 2026 global economy is being negotiated.
Headline Summary:
Largest U.S. Presence:
President Trump leads the biggest-ever U.S. delegation to Davos to promote protectionist policies.
Geo economic Conflict:
The IMF and WEF identify trade confrontation as the #1 risk to global stability in 2026.
China’s Multilateralism:
Vice Premier He Lifeng promotes China as a stable partner for the Global South and Europe.
Inflation Forecast:
Global inflation projected at 3.7% for 2026, but tariff wars threaten this downward trend.
Digital Dollar Rivalry:
Secretive reports suggest China is using Davos to lobby for digital yuan adoption in trade.
