For the first time since the year 2000, a sitting US president arrived at the Swiss Alps town of Davos to take part in the World Economic Forum. But more than his mere participation, President Donald Trump shocked European and other guests by the statements he made there.

Referring to the Palestinian refusal to meet with Vice President Mike Pence Jan. 22, Trump attacked Palestinian President Mahmoud Abbas, stating, “They disrespected us a week ago by not allowing our great vice president to see them.” Even more dramatic and significant was Trump’s reiterated threat to cut US financial assistance to the Palestinians. He said, “Money is not going to them unless they sit down and negotiate peace.” Trump echoed former threats by his administration to slash funding by $65 million for the United Nations Relief and Works Agency for Palestine Refugees in the Near East.

This last threat was supposed to coerce Palestinian leadership into negotiations with Israel on a US peace plan. It will, of course, have the opposite effect, and it will harm the livelihood of Palestinians in refugee camps. The Palestinian leadership suspects that after having taken Israel’s position on the issue of Jerusalem, Trump is now planning to fully endorse Israel against the Palestinians’ right of return. A senior PLO official close to the Palestinian president told Al-Monitor that Abbas is reaching out on two levels to his Arab partners, including Egypt, Jordan and Saudi Arabia. He hopes to solicit alternative funds for the refugees and also to garner Arab support against a Benjamin Netanyahu-modeled peace plan by the US administration.

The official assessed that the outline of Trump’s plan has been orchestrated by his envoys Jared Kushner and Jason Greenblatt in cooperation with Netanyahu.