Trump touts US 'economic miracle' at Davos, dismisses critics at one-year milestone
DAVOS, SWITZERLAND: President Donald Trump arrived at the World Economic Forum on Wednesday, January 21, with a message of confidence and defiance, declaring that the United States economy was outperforming dire predictions made by critics.
Speaking before global business and political leaders, Trump framed the past year as an “economic miracle,” crediting his policies for growth he said few believed were possible.
The opening portion of the address centered on American finances and living standards, echoing themes Trump outlined during a White House press briefing earlier this week. “The USA is the economic engine on the planet,” Trump told the Davos audience. “You all follow us down, and you follow us up.”
Defying experts on global recession risks
.@POTUS: "In recent decades, it became conventional wisdom in Washington, and European capitals that the only way to grow a modern Western economy was through ever-increasing government spending, unchecked mass migration and endless foreign imports... Virtually all of the… pic.twitter.com/f4vobDvZTJ
— Rapid Response 47 (@RapidResponse47) January 21, 2026
Trump targeted economists who warned that his agenda would destabilize markets. “Virtually all of the so-called experts predicted my plans to end this failed model would trigger a global recession and runaway inflation,” he said. “But we have proven them wrong.”
He said the purpose of his appearance was to explain “how we have achieved this economic miracle,” adding that other countries could learn from the US approach. Trump again defended tariffs and trade pressure, policies that several allies criticized in advance of his visit.
Slashing trade deficits without inflation rise
Trump: "The European nations, Japan, South Korea, they're our partners, they've gone into massive deals with us, especially on oil and gas. [...] When the United States goes up, you follow." pic.twitter.com/pPwgKTVK4j
— Visegrád 24 (@visegrad24) January 21, 2026
Turning to trade, Trump claimed that in one year his administration cut the monthly US trade deficit by 77% “with no inflation,” calling it a result “everyone said couldn’t be done.” He pointed to new steel plants under construction and said that the US had secured trade agreements covering 40% of all American commerce.
Those deals, he said, spanned Europe, Japan and South Korea, with a strong emphasis on energy exports. Trump argued that the agreements had lifted wealth and driven stock gains worldwide. “When the US goes up, you follow,” he told the audience.
Polls show Americans feel worse off
While Trump said Americans were “doing very well” and “very happy,” recent polling presented a different picture. A CBS poll released this week found that 74% of respondents believed that the administration was not focused enough on lowering prices.
The same survey showed 44% saying that Trump’s policies had made them worse off, while 38% reported no change. Despite those numbers, Trump repeated his claims that he had inherited record inflation and then eliminated it.
Weekly economic events starting in Iowa
White House chief of staff Susie Wiles says President Trump will travel to Iowa on Tuesday to deliver a speech focused on energy and the economy, per the press pool.
— Julia Manchester (@JuliaManch) January 21, 2026
She also said he will start to do more weekly travel ahead of the midterms.
The emphasis on economics in Davos reflected a broader strategy. White House Chief of Staff Susie Wiles told reporters traveling with the President that Trump would head to Iowa next week for an economy-focused event.
Wiles said the president planned to hold roughly one major event each week, ensuring that the economic message delivered in Davos and at the White House remained central to his second term.
