By Video Link from the White House, President Donald Trump spoke with the World Economic Forum at Davos, Switzerland on January 23, 2025 where he gave a very clear warning to businesses across the world: Invest in the United States or pay significant tariffs.
Incentives for domestic investment
President Trump, citing the benefits for companies making products inside the US, had said: “Come make your product in America and we will give you among the lowest taxes as any nation on earth.” The invitation of President Trump comes as part of his administration’s recent attempts to boost domestic manufacturing and speed up economic growth.
Tariff threats for non-compliance
On the other hand, President Trump threatened that companies moving goods production out of the country would face tariffs. He then explained, “But if you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff—differing amounts—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 under the Trump administration.” Only such a course of action proves his determination to turn the tide of world trade in the US’s interest.
Focus on Saudi investment and oil prices
President Trump said he spoke recently to the Crown Prince of Saudi Arabia Mohammed bin Salman who told him the kingdom is going to invest $600 billion in this country.
He concluded, “But I will ask him to increase it to $1 trillion.” The comment drew scattered laughter from the Davos audience. Also, Trump called on OPEC to lower the prices of oil, adding that high fuel prices prolong the war between Russia and Ukraine. He warned, “If the price came down, the Russia-Ukraine war would end immediately.”
Critique of NATO and trade partners
President Trump again pressed for NATO member countries to increase their spending to 5% of their Gross Domestic Product on defense. He also attacked the trade practices of allies, including Canada, and said the US did not need Canadian energy, vehicles, or lumber and repeated tariff threats.
Commitment to ending the Russia-Ukraine war
The same magazine quotes President Trump commenting on the continuous war between Russia and Ukraine, saying that he wants to meet with Russian President Vladimir Putin for a solution. He was quoted as saying, “One thing very important: I really would like to be able to meet with President Putin soon and get that war ended. We really have to stop that war. That war is horrible.” Again, this underlined his determination to make his administration more actively involved in international peacemaking processes.
Reception and reactions
Indeed, President Trump’s speech garnered a number of different reactions among the attendees at Davos. Whereas many of the remarks from the president were rather humorous and pulled laughter, other remarks he uttered drew groans-released during the time in which he attacked former members of the administration. It has indeed stirred debate among global business leaders and policymakers on the ramifications of his envisioned trade policies.
