ANKARA

European Central Bank President Christine Lagarde abruptly left a high-profile private dinner at the World Economic Forum in Davos, Switzerland after US Commerce Secretary Howard Lutnick harshly criticized Europe’s economic underperformance, according to media reports.

The incident, which occurred late Tuesday, was first reported by the Financial Times, with additional details cited by Bloomberg.

Hosted by BlackRock Chief Executive Larry Fink and attended by more than 100 global leaders, the dinner reportedly became tense as Lutnick mocked European economies for lagging behind the US. Former US Vice President Al Gore was reported to have booed during the remarks, while some guests walked out.

Parties involved offered no comment on the matter.

The episode came amid rising transatlantic tensions after US President Donald Trump threatened to impose 10% tariffs on imports from several European countries starting Feb. 1, with a possible increase to 25% in June unless US demands linked to Greenland were met.

Trump said the US needs control over Greenland for security reasons and had refused to rule out military options, raising concerns over a potential new tariff dispute that could disrupt transatlantic trade.

European leaders criticized the threats as “blackmail” and a “grave mistake” between allies.

French President Emmanuel Macron described them as “useless aggressivity,” while European Commission President Ursula von der Leyen warned that tariffs would be a mistake and called for a unified response. British Prime Minister Keir Starmer said the pressure was “completely wrong” and that Britain would not yield.

On Wednesday, however, Trump announced that he would pause the tariffs after saying a framework had been reached on a future deal involving Greenland and the broader Arctic region following a meeting with NATO Secretary General Mark Rutte in Davos.

"Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote on his Truth Social platform.

"Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st,” he added, without providing further details.

A scheduled bilateral meeting between Trump and German Chancellor Friedrich Merz in Davos was cancelled due to a delay in Trump’s arrival caused by a technical issue with Air Force One, according to German government sources.

Macron and Merz are attending the forum, while Starmer’s participation had not been confirmed.

Global markets have remained volatile amid uncertainty over trade policy and geopolitical tensions.