In his first global address since taking office, President Donald Trump on Thursday urged international business leaders to manufacture their products in the United States, promising “among the lowest taxes of any nation on Earth” while warning that those who do not would face tariffs.
Speaking at the World Economic Forum in Davos, Switzerland, Trump stated, “My message to every business in the world is very simple. Come make your product in America, and we will give you among the lowest taxes of any nation on Earth.”
He added, “We’re bringing them down very substantially, even from the original Trump tax cuts. But if you don’t make your product in America, which is your prerogative, then very simply you will have to pay a tariff.”
Trump reiterated his stance on tariffs, which he previously proposed for goods from Mexico, Canada, and China, while also considering similar measures for imports from the EU. His remarks suggested the tariffs could apply broadly, with “differing amounts” aimed at redirecting substantial revenue to the U.S. Treasury. He said, “But a tariff which will direct hundreds of billions of dollars and even trillions of dollars into our treasury to strengthen our economy and pay down debt.”
The speech marked Trump’s first address to global business and political leaders, just four days into his presidency, at a time when markets remain uncertain about his plans for imposing broad tariffs on imports.
Lower oil prices to end Russia-Ukraine war
While oil prices dropped and currencies fluctuated during his speech, President Donald Trump addressed international oil prices, directly linking them to Russia’s invasion of Ukraine.
“I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil, You’ve got to bring it down, which, frankly, I’m surprised they didn’t do before the election. That didn’t show a lot of love. Surprised by that,” Trump said. “If the price came down, the Russia, Ukraine war would end immediately.”
He continued, “Right now, the price is high enough that that war will continue. You got to bring down the oil price. You could end that war.”
Trump also set himself on a potential collision course with the Federal Reserve, urging it to cut interest rates “immediately” to bolster both the U.S. and global economy.
“I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world,” Trump added in a video conference on Thursday.
Canada and EU
President Donald Trump launched sharp criticisms at traditional allies such as Canada and the European Union, accusing them of contributing to the U.S. trade goods deficit. “One thing we’re going to be demanding is respect from other nations. Canada, we have a tremendous deficit with Canada. We’re not going to have that anywhere,” he declared.
Trump outlined his strategies to reduce inflation through tariffs, deregulation, and tax cuts, while emphasizing his aim to position the U.S. as a global leader in artificial intelligence, cryptocurrencies, and fossil fuels. “The United States has the largest amount of oil and gas of any country on Earth, and we’re going to use it,” he said, vowing to cut costs and strengthen manufacturing.
He also criticized EU taxation policies, dismissed long-standing Davos priorities like climate change and diversity, and reiterated his call for NATO countries to increase defense spending to 5% of their gross domestic product.