Davos [Switzerland]: US President Donald Trump, in a virtual address to the World Economic Forum (WEF) in Davos, Switzerland, called on global companies to manufacture their products in the United States, promising substantial tax cuts as an incentive. Trump also warned of hefty tariffs for those who choose otherwise, stating such measures would channel “billions and trillions” of dollars into the US Treasury.
“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. We’re bringing them down very substantially, even from the original Trump tax cuts,” Trump stated.
For companies opting not to produce in the US, Trump issued a stern warning: “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.”
Highlighting the advantages of manufacturing in the US, Trump claimed there was “no better place” to create jobs or grow a business, adding, “Under the Trump administration, there will be no better place on earth to create jobs, build factories, or grow a company than right here in the good old USA.”
Relations with Canada:
Trump criticized the trade deficit with Canada, estimated at USD 200 billion to USD 250 billion, calling it unfair. He proposed a controversial solution: making Canada the 51st US state to eliminate tariffs.
“Canada, we have a tremendous deficit with Canada. We’re not going to have that anymore. We can’t do it. As you probably know, I say you can always become a state. Then if you’re a state, we won’t have a deficit. We won’t have to tariff you,” Trump remarked. He also referred to outgoing Canadian Prime Minister Justin Trudeau as “Governor of the state of Canada.”
Trump argued that the US no longer depends on Canada for resources such as cars, lumber, or oil. “We don’t need them to make our cars, and they make a lot of them. We don’t need their lumber because we have our own forests… We don’t need their oil and gas. We have more than anybody,” he said.
Recently, the Trump administration announced plans to impose a 25% tariff on imports from both Mexico and Canada, further intensifying trade tensions with its neighbors.