The annual meeting of World Economic Forum held at Davos, Switzerland from 19 to 23 January, 2026. This year gathering is considered important as it has exposed the underlying differences and deep divisions within transatlantic community. This is a moment which can be described as history repeating itself. What Euro-Atlantic community is facing today Communist world witnessed during the middle phase of cold war. In many ways, the rupture in western world reflected in the speeches of American and European leaders at Davos resembles what historians call Sino-Soviet split during 1960s.
In the mid of 1963, Moscow witnessed a meeting between Soviet and Chinese officials to mend their ideological rift. Instead, the rift was widened as public criticism of each other’s policies further aggravated. Ultimately, ideological rift within communist world resulted into 1969 Sino-Soviet border conflict, thus, completing the split. As a result, United States saw an opportunity in the split and followed the policy of rapprochement with China. Its implications were not only limited to communist block but it redefined the great power competition and geopolitical structure of world.
Since his first term as President of America, Donald Trump has considerably weakened the unity of Western world. His America First rhetoric, sanctions against import of European steel, pressure against European allies to increase their defence budget and a threat of American withdrawal from NATO have all fractured the trans-Atlantic relations deeply. Biden administration tried to regain lost trust of European allies with America is Back mantra, by signing a deal on 17 years old Airbus vs Boeing conflict and relaxed sanctions against Russian company working on Nord Stream 2 pipeline. He even tried coopt Russia against China during his visit Europe and Moscow which would be later called as reverse Kissinger strategy. After it failed, he took hardened stance on Ukraine against Russia. However, AUKUS deal which was declared by France as a stab in back by allies led to call for formation of European NATO or an indigenous European force. Thus, it reflected a deep-rooted mistrust and limitations of upholding transatlantic unity in fast changing geopolitical environment.
Trump’s second term at White House has apparently been more detrimental to the unity of Western world. What geopolitical analysts believed to be unfolding as slow decline of West, rise of rest, decline neoliberal order, weakening of global institutions and dismemberment of western world in decades, seems to be happening in days. Particularly, Trump’s threat to take over Greenland from Denmark and threat imposition of tariff against European countries who may challenge Trump on this, have come as shock for European Leaders. From the point of view of Trump, European countries first defected on Israel-Gaza war, Ukraine and other areas of cooperation.
The public criticism witnessed at Davos between America and Europe was unprecedented. Starting with European Commission President, Ursula von der Leyen, she suggested Europe to rethink its security, economic and trading relations minus United States. France’s Macron called for European unity and defence of multilateralism and in a veiled manner allegedly called Trump a bully. Friedrich Merz, Chancellor of Germany also called for new partnerships and alliances amid global uncertainties. Such voices also reverberated across the Atlantic as Canadian Prime Minister Mark Carney declared the rupture in US led Global System and questioned the future of rules based international order. Even Volodymyr Zelensky, President of Ukraine called for United Armed forces of Europe amid uncertainty over the future of NATO.
Even before this verbal spat, Denmark’s leader said if Trump tries to annex Greenland it will be an end of NATO. At this stage of intensifying great power competition, the world expected to witness a successful reverse Kissinger strategy, but what it experiences is a repeat of Sino-Soviet split in the form of rupture between America and Europe. It has forced transatlantic countries to shift away their security and economic partnerships away from America. So far, Europe has announced mother of all deals with India, a country already hit hard by American Tariff, to diversify its relations away from US. They have finalized Comprehensive Economic Partnership Agreement with Indonesia and created one of largest trading zone by signing EU-Mercosur trade deal.
As Europe seeks to diversify it economic relations, its parliament has approved the suspension of a trade deal with US finalized in July 2025 in protest against Trump’s insistence on taking over Greenland. Most important of all, Canada has announced the strategic partnership with China after Prime Minister Carney’s visit to Beijing. He has also announced the trade deal with China under the shadow of threat by Trump to impose hundred percent tariff on Canada if the deal moves forward.
These developments show a broader trend of discontent between North American and European Allies. These developments underscore a geopolitical shift resulting from the weakening and division of Western world. Russia and China have successfully defeated the strategy of reverse Kissinger. China has also believed to have won trade war against United States. Apart from this, middle powers of Asia like; Turkey, Pakistan, Saudi Arabia, Indonesia are building more strategic and mutual economic partnerships. Such trends reflect the general challenges faced by American-led liberal order. Its soft power and soft image are also eroding fast. Its struggle to reestablish dominance in Western Hemisphere and Europe have also backfired.
This split creates an avenue of new opportunities for Russia and China. President Putin has indirectly endorsed Trump’s bid to take over Greenland. While China seeks to utilize this American rhetoric to present itself as the rightful custodian of the rules-based order. Even middle powers of world would seek to leverage its relations with great power amid this global uncertainty and future of world order. The implication of this rupture in Western world would echoes far beyond the Euro-Atlantic community. It will not only redistribute global power in geopolitical structure of world but create a new world order based on multipolarity, multiplexity or something else. However, one thing is apparent. The tectonic plates of global power centers drifting away from Euro-Atlantic and towards Asia. Thus, marking the end of centuries old Western dominance of global system and American hegemonic order is reaching its tipping point.
