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Donald Trump likes to discomfort his enemies.

Not to mention his friends, his partners, business adversaries, celebrity critics, anyone, in fact, who could end up on the other side of a deal.

As president of the world’s largest economy, that makes for a long list, many of them in Davos on Tuesday trying to make sense of what his second term will mean, and not getting very far.

Money blog: Trump’s cryptocurrency crashes as critics call it worthless

The World Economic Forum is a body that likes to think it has the answers. The annual conference attracts leaders from business, politics and civil society, gathering to share their wisdom and cut deals on the side.

Less than 48 hours into Trump II not only are they struggling for answers, they’re yet not clear what the question is.

For European political leaders, already exposed to soaring US growth rates, Trump’s still-vague threats to “tax and tariff” could pose a fundamental threat to economic cooperation and stability.

In the absence of firm policy, they promised to work with Trump, but not at all costs.

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Beckham: ‘Here to be voice of children’

European Commission president Ursula Von der Leyen conceded that the harmonious world order imagined at the turn of the century is dead – “Instead we have a new era of harsh geo-strategic competition.”

The race is one, she said, but not to the bottom. “We will be pragmatic but we will always stand by our principles… because that is the European way.”

Outgoing German chancellor Olaf Scholz, already a victim of the European populist wave, acknowledged the uncertainty.

“President Trump and his government will keep the world in suspense in the coming years,” he said. “We can and will deal with that, without unnecessary agitation and outrage, but also without false ingratiation or telling people what they want to hear.”

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Beckham: ‘Here to be voice of children’

A glance at the tech billionaires lined up in front of the cabinet at the inauguration, behind only the Trump family, suggests that may be wishful thinking.

Ukraine

The most coherent response came from the European leader with most to lose.

Volodymyr Zelenskyy asked not what Trump will do to help defeat Russia, but what Europe will do to remain relevant.

He painted a picture of a US administration striking deals with Russia and China while Europe looked on, a fundamental challenge and a call to arms that made the continents’ leaders shift in their seats.

For business, the implications are less grave but no less knotty.

Business reaction

Bankers and investors are braced for the upside of a president who will measure success by the stock market as much as poll ratings, The crypto crowd meanwhile have a spring in their snowshoes.

Others hope economic reality will outrun rhetoric.

In the face of Trump’s rejection of renewables and a promise to “drill baby, drill”, Henrik Anderson, chief executive of Danish wind turbine manufacturer Vestas, was not being blown off course

“The US is our largest market, I listened to most of it [the inauguration] before I went to bed last night, and I slept well overnight,” he told Sky News.

“This is the new administration coming into play, some of the legislation will either change or continue, but what I think we will see is that creating the energy he needs will also create jobs.”

Others are not so sure. “F****** hell,” said one prominent British chief executive with a shake of the head.

Donald Trump has everyone guessing, which is just the way he likes it.

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Donald Trump pauses US military aid to Ukraine

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Donald Trump pauses US military aid to Ukraine

Donald Trump has paused US military aid to Ukraine just days after his row with President Zelenskyy.

A White House official, speaking anonymously, said: “President [Trump] has been clear that he is focused on peace.

“We need our partners to be committed to that goal as well. We are pausing and reviewing our aid to ensure that it is contributing to a solution.”

There was no indication about the possible length of the pause, and there’s been no comment so far from Ukraine.

It comes after the astonishing clash between the two leaders – as well as vice president Vance – in the Oval Office on Friday.

Donald Trump‘s berating of Mr Zelenskyy has led to a show of support from European leaders as they try to formulate their own way forward.

The US president attacked the Ukrainian leader again on Monday, telling reporters he should be “more appreciative”.

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US military aid has included Patriot air defence systems. Pic: Reuters
Image:
The tens of billion in US aid has included Patriot air defence systems. Pic: Reuters

Writing on Truth Social, Mr Trump also said Mr Zelenskyy had made “the worst statement that could have been made” after he commented that peace was still “very, very far away”.

“America will not put up with it for much longer!” he posted.

“It is what I was saying, this guy doesn’t want there to be peace as long as he has America’s backing,” the president added.

Mr Zelenskyy then posted on X, saying Ukraine was “working together with America and our European partners and very much hope on US support on the path to peace”.

“Peace is needed as soon as possible,” he said.

‘Music to the ears of Putin’

By David Blevins, US correspondent

President Trump’s decision to pause military aid to Ukraine marks a significant shift in US foreign policy, one previously considered unthinkable.

This blow to Ukraine’s defences in the face of Russian aggression will be music to the ears of President Putin. US military aid has kept Ukraine in this David and Goliath battle for three years.

It has funded what military analysts simplify as “the big stuff” of battle – artillery, anti-tank weapons, rockets and armoured vehicles. Trump’s decision to push pause disregards efforts by Keir Starmer and other European leaders to devise a peace plan.

Those already questioning Europe’s reliance on the US for defence will conclude they have been given the answer.

But the decision sets President Trump up for a potential confrontation with Republicans, who had approved the funding, in Congress.

White House sources say he wants President Zelenskyy to go on TV and apologise for the jaw-dropping showdown last Friday. But the Ukrainian president feels he has no apology to make for expressing his doubt about Russia’s commitment to peace.

Earlier, Trump side-stepped a question about a Kremlin diplomat claiming the US administration and Moscow were now aligned on foreign policy.

This weakening of Ukraine’s defence capability moves that question front and centre as he prepares to address Congress on Tuesday.

Despite the diplomatic crisis, President Trump has said a deal is still possible.

An agreement giving the US access to Ukraine’s rare earth metals was meant to have been signed by the two presidents on Friday.

It was billed as an important step in a future peace deal – and part payback for aid already received.

However, the dramatic falling out has thrown that into jeopardy.

Mr Zelenskyy wants the metals deal to include guarantees on halting Russia should it break the terms of any peace agreement.

However, vice president JD Vance suggested on Monday that the metals pact was the best way to secure a lasting end to the war.

“If you want real security guarantees, if you want to actually ensure that Vladimir Putin does not invade Ukraine
again, the very best security guarantee is to give Americans economic upside in the future of Ukraine,” Mr Vance said.

“That is a way better security guarantee than 20,000 troops from some random country that hasn’t fought a war in 30 or 40 years,” he added.

European and world allies – who met the Ukrainian leader in London at the weekend – have discussed a “coalition of the willing” to deploy peacekeepers and deter further Russian aggression.

The prime minister said Britain was prepared to put “boots on the ground and planes in the air” under the plan – but it’s unclear who else might participate.

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How many countries will back Starmer’s plan?

Read more:
Long-range drones ‘weakening Russia’s combat ability’
Zelenskyy: ‘I am exchangeable for NATO membership’

The coalition that could secure peace in Ukraine

Keir Starmer told MPs on Monday that Britain must “lead from the front” on supporting Ukraine and the “security of our continent, the security of our country”.

However, the prime minister believes any international deployment of troops must have a US “backstop” deterrent to be taken seriously by Russia.

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Sky News gets rare access to drone launch

America has given around €64bn of military aid to Ukraine, compared with €62bn from European nations (including Britain).

The overall US total is €114bn and the European one €132bn. This includes humanitarian aid and other financial assistance to keep the country running.

Following the weekend summit, the UK also pledged £1.6bn in finance for Ukraine to buy another 5,000 air defence missiles.

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Donald Trump confirms Mexico and Canada tariffs – sending financial markets reeling

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Donald Trump confirms Mexico and Canada tariffs - sending financial markets reeling

Donald Trump has confirmed 25% tariffs on goods from Mexico and Canada, taking effect at 5am UK time on Tuesday.

The US president confirmed the tariffs in a speech at the White House – and his announcement sent US stocks down sharply.

The tariffs will be felt heavily by US companies which have factories in Canada and Mexico, such as carmakers.

Mr Trump said: “They’re going to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.”

There’s “no room left” for a deal that would see the tariffs shelved if fentanyl flowing into the US is curbed by its neighbours, he added.

As of 12:01am Eastern Standard Time (5.01am GMT), Mexico and Canada face tariffs of 25%, with 10% for Canadian energy, the Trump administration confirmed.

And tariffs on Chinese imports will double, raising them from 10% to 20%.

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Canada announced it would retaliate immediately, imposing 25% tariffs on US imports worth C$30bn (£16.3bn). It added the tariffs would be extended in 21 days to cover more US goods entering the country if the US did not lift its sanctions against Canada.

China also vowed to retaliate and reiterated its stance that the Trump administration was trying to “shift the blame” and
“bully” Beijing over fentanyl flows.

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What is America’s trade position?

Mr Trump’s speech stoked fears of a trade war in North America and sent financial markets reeling.

Markets the Dow Jones Industrial Average, and the Nasdaq Composite fell by 1.4% and 1.76% respectively.

The share prices for automobile companies including General Motors, which has significant truck production in Mexico, Automaker and Ford also fell.

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Consumers in the US could see price hikes within days, an expert has said.

Gustavo Flores-Macias, a public policy professor at Cornell University, New York, said “the automobile sector, in particular, is likely to see considerable negative consequences”.

This is due to supply chains that “crisscross the three countries in the manufacturing process” and ” because of the expected increase in the price of vehicles, which can dampen demand,” he added.

Read more:
The effects of Trump trade tariffs explained
Trump hits out at Zelenskyy again

The Trump administration is gearing up to bring in other tariffs in the coming weeks.

On 2 April, reciprocal tariffs will take on effects on all countries that impose duties on US products.

He is also considering 25% tariffs on goods from the EU “very soon” after claiming the bloc was created to “screw the United States”.

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America will not put up with it for much longer!’: Donald Trump hits out at Ukraine’s President Zelenskyy once again

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America will not put up with it for much longer!': Donald Trump hits out at Ukraine's President Zelenskyy once again

Donald Trump has hit out at the Ukrainian president once again, just four days after an explosive on-camera spat between the pair.

The US president posted on Truth Social saying Volodymyr Zelenskyy made “the worst statement that could have been made” when he said the end of the war with Russia is “very, very far away”.

“America will not put up with it for much longer!” Mr Trump posted.

“It is what I was saying, this guy doesn’t want there to be peace as long as he has America’s backing,” the president added.

He also appeared to attack Mr Zelenskyy and Europe after yesterday’s Ukraine summit in London at which leaders, according to Mr Trump: “stated flatly that they cannot do the job without the US.”

“What are they thinking?” Mr Trump asked.

A deal to end the war was still “very, very far away”, Mr Zelenskyy said earlier, adding he expects to keep receiving US support despite the two leaders’ public spat.

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“I think our relationship (with the US) will continue because it’s more than an occasional relationship,” the Ukrainian president added.

Mr Trump said in his Truth Social post: “This is the worst statement that could have been made by Zelenskyy, and America will not put up with it for much longer!

“It is what I was saying, this guy doesn’t want there to be Peace as long as he has America’s backing and, Europe, in the meeting they had with Zelenskyy, stated flatly that they cannot do the job without the U.S. – Probably not a great statement to have been made in terms of a show of strength against Russia. What are they thinking?”

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