European Central Bank President Christine Lagarde abruptly left an invitation-only dinner at the World Economic Forum in Davos, Switzerland, during a speech by U.S. Commerce Secretary Howard Lutnick. Reports indicate Lutnick criticized Europe's energy policies and declining competitiveness, causing discomfort among European attendees. His remarks, which reportedly belittled the region compared to the U.S., drew both applause and boos from the elite gathering.

The incident highlights the tense geopolitical backdrop at Davos, where European leaders seek unity amid U.S. President Donald Trump's tariff threats and demands for Greenland. Trump is scheduled to address the forum, adding to market uncertainty. U.S. stock markets slumped to their worst session since October on Tuesday, reflecting investor anxiety over escalating trade tensions and the potential for new levies on European goods.

Lutnick sat with U.S. Trade Representative Jamieson Greer and BlackRock CEO Larry Fink at the dinner's rear. An attendee suggested Lagarde appeared tired, while Lutnick's spokesperson denied anyone left hastily. The ECB offered no comment. The episode underscores the fragile transatlantic relations that could impact monetary policy coordination and investor sentiment in the coming months.