European Union governments are adopting a cautious stance and closely monitoring United States President Donald Trump's participation in the World Economic Forum in Davos. This comes at a critical juncture for transatlantic trade tensions, with EU officials viewing Trump's appearance as a key moment to gauge the direction of these disputes. The EU's apprehension is heightened by ongoing disagreements, notably concerning the US's plans for Greenland and the potential imposition of new tariffs by the US in response to European opposition. Diplomats and EU officials are looking to Trump's address for indications that could help lower tensions and potentially defuse the ongoing conflicts. The situation underscores a broader pattern of friction in US-EU economic and political relations during the Trump administration, characterized by a significant US trade deficit with the EU and differing approaches to trade policy and international agreements. The threat of further tariffs and the EU's potential retaliatory measures have created uncertainty and concern within European industries and financial markets, reminiscent of trade war volatility seen in previous years. The World Economic Forum in Davos traditionally serves as a platform for global leaders to discuss and address pressing international issues, and the current US-EU dynamic adds a significant layer of geopolitical and economic importance to this year's event. The article suggests that the EU is strategically holding back on direct confrontation, opting instead to observe and await signals from the US President's address before formulating a definitive response to the escalating trade dispute. This approach reflects a desire to manage the complex relationship and avoid further exacerbation of tensions while seeking avenues for resolution.