Trump warns global companies to produce goods in the US or be subject to tariffs

During the 55th annual World Economic Forum (WEF) meeting in Davos, Switzerland, U.S. President Donald Trump delivered a special address remotely. He was joined by Ana Patricia Botin, chairwoman of the Spanish bank Santander, Brian Moynihan, CEO of Bank of America, Patrick Pouyanne, CEO of TotalEnergies, Stephen Schwarzman, CEO and Co-Founder of Blackstone Group, and Borge Brende, President and CEO of World Economic Forum. The event took place on January 23, 2025. (Source: REUTERS/Yves Herman)

• • Trump warns Davos conference that US imports will face tariffs
  • Firms to enjoy low taxes by moving factories to US, Trump says
  • Trump says US doesn’t need Canadian cars, lumber, oil
  • US-China trade relationship ‘just unfair’ Trump says

In a meeting with global business leaders on Thursday, U.S. President Donald Trump emphasized the importance of manufacturing products within the United States. He advised the leaders to consider this strategy as a means to avoid import tariffs and take advantage of the low tax rates offered domestically.

During a videoconference from Washington to the World Economic Forum in Davos, Switzerland, Trump issued a warning about the possibility of imposing new tariffs on all countries, albeit in varying amounts.

According to a panel of business executives, Trump expressed a straightforward message to businesses worldwide: “Come and manufacture your products in America, and we will provide you with some of the lowest taxes compared to any other nation on earth.”

According to Trump, if a product is not made in America, the company will be subject to a tariff. He believes that this tariff will generate a significant amount of money, possibly in the hundreds of billions or even trillions of dollars, which will be used to improve the economy and reduce debt.

According to Trump’s proposal, companies that manufacture in the U.S. may be eligible for a 15% corporate tax rate, pending approval from Congress.

On Monday, Trump embarked on his presidential journey.

During his election campaign, he had promised to implement tariffs, including a 10% duty on global imports and a 60% duty on goods from China.

President Trump originally announced that Canada and Mexico would face a 25% duty on goods sent to the U.S. starting on February 1st. This decision was made in response to concerns about illegal immigration and drug shipments, particularly the distribution of fentanyl, coming across the U.S. borders. However, President Trump has now extended the deadline to China, adding to existing trade tensions.

Technology has revolutionized the way we live and work, making our lives easier and more efficient. From smartphones to smart homes, the possibilities seem endless. But with all the benefits that come with technology, there are also some drawbacks. One of the biggest concerns is the impact of technology on our mental health.

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It is important to find a balance and set boundaries when it comes to technology. Taking breaks from screens, establishing tech-free zones, and prioritizing face-to-face interactions can help mitigate some of the negative effects. Additionally, practicing self-care and being mindful of our technology usage can go a long way in maintaining our mental well-being in a technology-driven world.

According to Trump, it is imperative for Canada and Mexico to put an end to the influx of migrants and the distribution of fentanyl. However, there hasn’t been any mention of engaging in negotiations to address this matter. Trump has further expressed his intention to impose tariffs on the European Union.

“We will insist on receiving respect from other nations,” stated Trump firmly.

CANADA CRITICISM

In his speech, Trump specifically targeted Canada, highlighting its significant trade surplus with the United States. However, he mistakenly stated the surplus as $200 billion to $250 billion annually, describing it as “tremendous.”

According to data from the U.S. Census Bureau, Canada had a goods surplus of $64.3 billion with the U.S. in 2023. This significant surplus can be attributed to the substantial value of over $130 billion in U.S. imports of Canadian crude oil and petroleum products.

According to the statement, the second largest U.S. trading partner, Canada, has been a challenging counterpart in trade negotiations. The speaker suggests that Canada could potentially evade tariffs by becoming the 51st state of the United States.

“We don’t rely on them to manufacture our cars, and they produce a significant quantity of them. We have an abundance of our own forests, which eliminates the need for their lumber, and so on,” remarked Trump. “Their oil and gas are unnecessary commodities for us, as we possess more than any other nation.”

The imposition of new tariffs by the United States on Canada and Mexico would essentially nullify a long-standing free trade agreement that has facilitated duty-free trade across North America for over three decades.

CHINA ‘FAIR RELATIONSHIP’

Trump expressed his desire for the United States to achieve a fair and balanced trade relationship with China. He highlighted the significant trade deficit with China, which he mistakenly stated as $1.1 trillion. This figure actually represents the overall U.S. goods trade deficit for the first 11 months of 2024. Trump emphasized the importance of creating a level playing field in trade between the two nations.

According to data from the Census Bureau, the trade deficit between the United States and China for goods was $279.1 billion in 2023. This is a decrease from its highest point of $418.2 billion in 2018.

“We don’t need to make it phenomenal,” Trump stated, discussing the U.S.-China trade. “We need to establish a fair relationship. At present, it’s anything but fair.”

Trump did not offer any fresh insights into the specific actions his administration would take to enforce tariffs.

The confirmation process for his top economic cabinet picks is still pending in the U.S. Senate. This includes nominees such as Scott Bessent for Treasury secretary, Howard Lutnick for Commerce secretary, and Jamieson Greer for U.S. Trade Representative.

U.S. Senate Majority Leader John Thune informed Reuters that the Senate…

Bessent’s nomination was announced over the weekend. Lutnick, the head of brokerage firm Cantor Fitzgerald, is set to face a Senate confirmation hearing on Wednesday. However, no hearing has been scheduled yet for Greer.

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