The rise of the ‘Middle Powers’ and what it means for US trade relations.

One of the standout moments of this year’s meeting was the address given by Canadian Prime Minister Mark Carney, who has made waves on the world stage with his desire to reshape the global political and economic landscape. He made it clear that what he called the ‘Middle Powers’ (Canada, the UK, Australia, and others) need to band together in the face of perceived uncertainty over the US.

This comes on the heels of Carney signing a major trade deal with China, focused on importing low-cost Chinese EVs into his country, signaling a shift away from reliance on American imports. This is Carney’s core idea: partially divest from the US to become more self-reliant.

 

Mark Carney - Canadian Prime Minister

 

If your business relies heavily on exporting to countries like Canada and the UK, there is no need to panic. The United States will continue to trade freely with these nations for the foreseeable future. Now may be a good time to expand your domestic market and diversify where you ship to, ensuring revenue continues to flow.

 

AI regulation is coming, and we need to be prepared.

Davos was framed around key questions the forum was trying to answer. One of these was: “How can we better invest in people?” This sparked intense debate about how AI will shape the future and how people can remain central in the workplace.

The key takeaway here is that the EU is serious about regulating AI and protecting people’s jobs. Roxana Mînzatu, Executive Vice President for Social Rights and Skills, Quality Jobs and Preparedness at the European Commission, asked: “How do we stay human-centric as AI is introduced into our production processes?”

 

Roxana Mînzatu - Executive Vice President, European Commission

 

This signals that the EU’s priority around AI is not growth or innovation, but worker protection. This sentiment is not as common in the US, but these ideas tend to spread. It is important to ensure that AI use doesn’t become unmanageable. Use it as a tool for your employees, not a wholesale replacement.

 

No more tariffs over Greenland

One of the more unexpected talking points to emerge from Davos was the renewed focus on the Arctic, and specifically Greenland. What began as a discussion about climate routes and access to rare earth minerals quickly turned into a broader conversation about trade friction and tariffs between the US, the EU, and key Nordic partners.

Greenland’s growing strategic importance, both for shipping lanes and critical resources used in batteries and advanced manufacturing, has put it firmly on the radar of major economies. Several leaders signaled a desire to avoid turning the region into a new flashpoint for trade disputes, with talk of easing or avoiding tariffs tied to Arctic resource supply chains. The message was clear: cooperation will be more profitable than confrontation.

For US businesses, this could translate into more stable pricing and fewer surprises in industries tied to energy, manufacturing, and technology. If your supply chain touches raw materials, shipping, or international logistics, keeping an eye on how these agreements develop could give you a competitive edge. Reduced trade friction often means lower costs, faster delivery times, and more predictable planning.

 

Conclusion

Davos 2026 made one thing clear: the global economy is becoming more complex, more interconnected, and more influenced by political and technological shifts. From the rise of middle powers, to the regulation of AI, to the quiet but meaningful conversations about tariffs and strategic regions like Greenland, the signals are there for those paying attention.

You don’t need to be in the Swiss Alps to benefit from these insights. Staying informed, diversifying your markets, and building flexible, people-focused strategies can help your business stay resilient in a changing world. The big picture matters, even on Main Street.