Fact-Checking Trump’s Davos Address: The Truth Behind His Claims

Donald Trump delivered a special address at the World Economic Forum in Davos, Switzerland, on Wednesday, January 21, 2026.

The speech was characterized by strong protectionist rhetoric, claims of a historic economic turnaround during his first year back in office, and controversial foreign policy assertions regarding Greenland and NATO.

Below is a fact-check of the key claims made during his address, categorized by accuracy.

❌ False Claims

• Claim: « After the war [WWII], we gave Greenland back to Denmark. How stupid were we to do that? »
  • Fact: False. The United States never owned Greenland, so it could not have « given it back. » During World War II, the U.S. signed an agreement with the Danish ambassador to establish military bases on the island to protect it from Nazi Germany, but the agreement explicitly recognized Denmark’s sovereignty. The U.S. acted as a protector, not an owner.
• Claim: « We pay for NATO… 100% of NATO, because they weren’t paying their bills. »
  • Fact: False. The U.S. does not pay 100% of NATO’s budget. The U.S. contributes roughly 16% to NATO’s direct administrative budget (similar to Germany). Regarding defense spending (where members aim to spend 2% of their own GDP), the U.S. contributes the largest share in absolute dollars, but it is not « 100% » of the alliance’s combined military spending, nor does it pay other countries’ « bills. »
• Claim: « China makes almost all of the windmills, and yet I haven’t been able to find any wind farms in China… they don’t use them themselves. »
  • Fact: False. China is the world’s global leader in wind energy capacity. As of recent data, China accounts for nearly 40-50% of global wind generation and has more wind capacity under construction than the rest of the world combined.
• Claim: « The United States is the only country with virtually no inflation. »
  • Fact: False. While specific 2026 CPI data fluctuates, claiming « no inflation » is economically inaccurate. Most developed economies aim for a target rate (usually around 2%). Recent reports indicate U.S. prices are still rising (albeit potentially slower than before), and items like gas and food remain above the levels imply by « no inflation. »

⚠️ Misleading or Exaggerated

• Claim: « I slashed our monthly trade deficit by a staggering 77% in one year. »
  • Context: Highly Exaggerated. A 77% reduction in the trade deficit in a single year would be an unprecedented economic anomaly, typically requiring a massive economic collapse or complete halt in imports. Standard economic data does not support a shift of this magnitude in a healthy economy.
• Claim: « I’ve ended eight unendable wars in 10 months. »
  • Context: Misleading. Trump claimed credit for « settling » conflicts in regions including the DRC, Kosovo/Serbia, and disagreements involving Ethiopia and Egypt. In reality, many of these conflicts are either ongoing, or the « settlements » are diplomatic pauses rather than permanent peace treaties. For example, the dispute between Ethiopia and Egypt is diplomatic (over a dam), not a shooting war, and violence continues in the eastern DRC.
• Claim: « Gasoline is now below $2.50 a gallon in many states… and soon will be $1.99. »
  • Context: Misleading. While prices may have fluctuated, national averages in January 2026 were reported around $2.78, with no state average dropping below $2.00 at the time of the speech.
• Claim: « I won’t use force » to acquire Greenland.
  • Context: Contradictory/New Stance. This contradicts previous rhetoric where his administration threatened tariffs on European allies (including the UK, France, and Germany) to pressure Denmark into selling the territory. While he verbally ruled out military force in this specific speech, his administration continues to use aggressive economic coercion (tariffs) to force the sale.

✅ True (Regarding Policy & Proposals)

• Policy Proposal: Trump announced he signed an executive order banning large institutional investors from buying single-family homes.
  • Fact: True. This is a stated policy of his current administration aimed at lowering housing costs, though its long-term economic effectiveness is debated by economists.
• Policy Proposal: He called on Congress to cap credit card interest rates at 10% temporarily.
  • Fact: True. This is an accurate reflection of the proposal he outlined in the speech to address consumer debt.

Summary of the Speech

The speech was less about standard economic metrics and more of a nationalist manifesto.

Trump used the platform to:

1. Attack Green Energy: He referred to the « Green New Scam » and heavily criticized wind power while promoting U.S. oil and gas.
2. Promote Cultural Protectionism: He used strong language regarding « saving Western civilization » and criticized « mass migration, » specifically attacking Somali immigrants in relation to fraud cases in Minnesota.
3. Realign Alliances: He signaled a transactional approach to traditional alliances, prioritizing the acquisition of Greenland over diplomatic norms with NATO partners.