Trump's second presidency dominated proceedings at the World Economic Forum amid ominous warnings over the looming threat of trade tariffs and his decision to pull the United States out of the Paris climate agreement.

EU, German and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump's return to the White House.

Despite fears that the tariffs could spark a global trade war and reignite inflation domestically, Jamie Dimon, CEO of JPMorgan Chase, said they could protect American interests and bring trading partners back to the table for better deals for the country,

Von der Leyen insisted that the United States remains an important partner, taking a conciliatory tone in a speech to the annual meeting of global elites in Davos, Switzerland. The EU's "first priority will be to engage early, discuss common interests, and be ready to negotiate" with Trump, she said.