Angela Merkel joined other world leaders in taking a thinly veiled swipe at the US leader by lambasting nations that followed protectionist policies.
Asking whether the globe had learned the lessons of World War Two, she declared: “Protectionism is not the proper answer.
“If we are of the opinion that things are simply not fair, that there is no reciprocity, then we have to seek multilateral answers, and not pursue a unilateral protectionist course where we isolate ourselves.”
In a wide-ranging speech on the future of Europe, she admitted to having “regret” at Britain’s Brexit decision but claimed it had given the EU “courage to move forward”.
And she said the key to the bloc’s future lay in uniting with a common foreign policy so they could speak as one on global issues.
She told the packed hall: “Let us not shut ourselves off towards others, let us keep pace with the best in the world and let us canvas for a multilateral approach.”
The embattled Chancellor said plans for closer integration on defence would “send a clear and unequivocal signal” to countries like the US and China.
And she told the world leaders: “Europe hasn’t been all that active in its foreign policy.
“We need to take more responsibility. We need to take our destiny into our own hands.”
The Chancellor, who is struggling to form a coalition following her election disaster warned Europe could no longer rely on the US for support.
She said: “Now they concentrate on themselves and their own security.”
Towards the end of her speech, she also insisted Europe wanted to maintain a close relationship with the EU, but insisted once again it could not be at the expense of freedom of movement.
She said: “Let me say for Germany, but also for all of us, we want to have a good partnership with Britain in the future.
“It’s in their hands how close they want this partnership to be.”
Mr Trump, who has not yet arrived at the Swiss ski resort gathering, has faced a string of criticisms from leaders already over his “America first” policy.
Before Mrs Merkel’s speech, Italian premier said the President’s protectionist policy was understandable but “obviously there’s a limit”.
And, like Mrs Merkel, he called for a closer union and the EU to be “relaunched” this year.
He said: “Europe has an enormous trade force, economic force but not yet a sufficiently strong political decision.
“This is the opportunity for the next month to relaunch a political role of the main European countries or all the European countries.”