Synopsis
In a recent address to the World Economic Forum in Davos, US President Donald Trump urged global businesses to manufacture in the US, offering lower taxes while warning of hefty tariffs for those choosing to produce elsewhere. He emphasized the importance of maintaining a strong economy and reducing trade deficits.Key Takeaways
- Trump encourages businesses to produce in the US.
- He promises significant tax cuts for American manufacturers.
- Tariffs will be imposed on goods produced outside the US.
- Trump highlights the US's economic strength and job creation.
- He addresses trade deficits, particularly with Canada.
Davos (Switzerland), Jan 24 (NationPress) US President Donald Trump has urged international businesses to produce their goods in the US, offering significant tax reductions, but has also issued a firm warning that those opting for production abroad will incur tariffs amounting to 'billions and trillions' of dollars.
Speaking virtually at the World Economic Forum (WEF) in Davos, Switzerland, Trump assured substantial tax benefits for companies that choose to operate in the US.
"My message to every business globally is straightforward. Come manufacture your product in America, and we will provide you with some of the lowest tax rates of any nation worldwide. We're significantly reducing them, even from the initial Trump tax cuts," he stated.
Trump cautioned businesses that decide against US manufacturing, stating, "If you opt not to produce your product in America, which is your choice, then simply put, you will face a tariff of varying amounts, which will funnel hundreds of billions and even trillions of dollars into our treasury to enhance our economy and reduce debt."
He further emphasized that there is "no better place" than the "good old USA" to create jobs and establish factories under his administration.
"During the Trump administration, there won't be a better place on the planet to generate jobs, construct factories, or expand a business than right here in the good old USA," he asserted.
Trump has suggested a 15 percent corporate tax rate for companies manufacturing in the US, pending Congressional approval.
He commenced his presidency on Monday without immediately enforcing the tariffs he had promised during his campaign, which included a 10 percent duty on global imports and a 60 percent tariff on goods from China.
However, he noted that Canada and Mexico would face a 25 percent duty on February 1 for goods sent to the US due to issues related to illegal immigration and the smuggling of drugs, including fentanyl, across their borders. Trump on Tuesday extended the February 1 deadline for China, threatening a 10 percent duty.
Regarding relations with Canada, the US President pointed out that the US has faced a deficit of approximately $200 billion or $250 billion with Canada, which he deemed unfair.
He reiterated his suggestion of making Canada the 51st US state, implying that this would eliminate the need for tariffs.
"Canada, we have a massive deficit with Canada. We're not going to tolerate that any longer. It's, I don't know if it's beneficial for them. As you may know, I suggest they can always become a state. Then if you are a state, we won’t have a deficit. We won't have to impose tariffs on you," he remarked.
"However, Canada has been quite challenging to negotiate with over the years, and it's unjust for us to maintain a $200 billion or $250 billion deficit," he added.
Trump also pointed out that the US no longer depends on Canada for essential products such as cars, lumber, and oil.
"We no longer need them for our cars, and they manufacture many. We don't require their lumber because we have our own forests... We don’t need their oil and gas. We possess more than anyone else," he noted.
Recently, Trump indicated that his administration intends to impose 25 percent tariffs on imports from Mexico and Canada.
For some time, Trump has been advocating for Canada to become the 51st US State to sidestep these tariffs.
He even referred to outgoing Canadian Prime Minister Justin Trudeau as the "Governor of the state of Canada".
Trump expressed plans to request Saudi Arabia and the Organisation of the Petroleum Exporting Countries (OPEC) to lower the price of oil to stimulate the global economy.
He argued that if the current global oil price, around $77 a barrel, is reduced, "the war in Ukraine will end immediately." Russia utilizes revenue from its oil production to fund its ongoing conflict with Ukraine.
Trump stated that in the global economy, the US simply seeks to be treated fairly by other nations.
He expressed the desire for a "fair relationship" with China, the world's second-largest economy.
"We don't aim to exploit," he said regarding US-China relations.
"We merely want a level playing field.
