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In his first major international address since his inauguration, U.S. President Donald Trump delivered a bold message to world business and political leaders at the World Economic Forum in Davos, Switzerland.
Trump urged global businesses to manufacture their products in the United States, promising some of the “lowest taxes of any nation on Earth” for those that comply. However, he warned that those who don’t would face tariffs as part of his aggressive economic strategy.
“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,” Trump stated. “But if you don’t, then very simply, you will have to pay a tariff.”
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Trump reiterated his intention to levy tariffs on goods imported from Mexico, Canada, China, and potentially the European Union, suggesting the tariffs could vary but would direct “hundreds of billions of dollars and even trillions of dollars” into the U.S. treasury. The funds, he claimed, would strengthen the economy and help pay down national debt.
These remarks came as markets reacted nervously, with fluctuations in oil prices and currencies during his speech. Trump linked oil prices directly to Russia’s invasion of Ukraine, calling on Saudi Arabia and OPEC to lower prices. “If the price came down, the Russia-Ukraine war would end immediately,” he asserted, implying that high oil prices were sustaining the conflict.
Trump did not shy away from targeting traditional U.S. allies, criticising Canada and the European Union for their trade practices. He accused Canada of contributing to the U.S. trade deficit and called for “respect from other nations.”
He also put himself at odds with the Federal Reserve, urging it to cut interest rates “immediately” to boost the U.S. and global economy. “Likewise, they should be dropping [rates] all over the world,” he added.
Trump outlined his vision for reducing inflation through a combination of tariffs, deregulation, and tax cuts. He pledged to position the U.S. as a global leader in artificial intelligence, cryptocurrencies, and fossil fuels, emphasising that America holds the largest reserves of oil and gas globally. “We’re going to use it,” he said, promising to slash costs and bolster manufacturing.
In his address, Trump dismissed traditional Davos priorities such as climate change and diversity while criticising EU taxation and calling for NATO countries to increase defence spending to 5% of GDP. His remarks signalled a clear departure from the cooperative globalist tone typically associated with the forum.
Trump’s address in Davos underscored his “America First” agenda and his willingness to challenge global norms to achieve economic dominance. However, his bold rhetoric has left allies uneasy and markets uncertain as the global economy braces for potential disruptions under his leadership.
