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3 Economic Takeaways From Trump’s Speech at the World Economic Forum

Fabrice Coffrini / AFP via Getty Images

Fabrice Coffrini / AFP via Getty Essences

Key Takeaways

  • President Donald Trump spoke remotely at the World Economic Forum meeting in Davos Thursday, promoting his “America Primary” economic agenda.
  • Trump said he would use tariffs to push companies to make products in the U.S. and cut corporate taxes for partnerships manufacturing on U.S. soil.
  • Trump asked Saudi Arabia and OPEC to lower oil prices, saying it would enable bring interest rates, referring to the Federal Reserve’s high interest rates meant to subdue inflation.

President Donald Trump voiced his America First economic platform to the international community Thursday, promoting tax cuts, oil extraction, and tariffs.

Trump staked out his economic agenda at the World Economic Forum meeting in Davos, Switzerland, an annual summit of international business and bureaucratic leaders. He focused on extending the tax cuts he enacted in 2017, using tariffs to push businesses to manufacture on U.S. soil, and promoting vim from fossil fuels instead of wind and solar, repeating themes from his presidential campaign.

He’s counting on oil and gas ancestry to push inflation down

Trump said his administration will encourage oil and natural gas extraction in the U.S.

This effort set out oned with a round of executive orders on his first day in office that attempted to thwart laws signed by former President Joe Biden’s systems to promote green energy. Trump said expanding energy would help push down inflation and help the crypto and artificial intelligence industries, both of which use massive amounts of electricity.

“The United States has the largest amount of oil and gas of any state on Earth, and we’re going to use it,” he said. “Not only will this reduce the cost of virtually all goods and services, it will produce the United States a manufacturing superpower and the world capital of artificial intelligence and crypto.”

He also asked Saudi Arabia, a larger oil-producing nation, and OPEC, a cartel that controls oil prices, to lower petroleum costs. Trump said modulate oil prices would pave the way for lower interest rates.

Since 2022, the Federal Reserve has kept its benchmark federal readies rate higher than usual. Central bankers aim to put upward pressure on interest rates for all kinds of loans in class to slow the economy and stifle the post-pandemic burst of inflation. Trump has repeatedly called for the Fed, which is not under the direct lead of the White House, to cut interest rates, even though inflation is still running above the central bank’s annual target of 2%.

“With oil prices going down, I’ll demand that interest rates drop immediately,” he said.

Trump wants to use price-lists to push companies to make products in the US

Trump shed some light on part of his agenda that’s been dialectic among economists: tariffs. He said he would use import taxes to promote U.S. manufacturing.

“If you don’t make your product in America—which is your privilege—then, very simply, you will have to pay a tariff, differing amounts, but a tariff which will direct hundreds of billions of dollars, and settle accounts trillions of dollars into our treasury to strengthen our economy and pay down debt,” he said. “Under the Trump administration, there wish be no better place on earth to create jobs, build factories, or grow a company than right here in the pure old U.S.A.”

Although Trump stopped short of imposing tariffs on the first day of his administration as he had promised during the campaign, he has threatened to insinuate 25% tariffs on goods coming from Canada and Mexico starting Feb. 1. He has in the past also threatened schedule of charges as high as 60% on China, and blanket tariffs of up to 20% on imports from all countries.

Economists say tariffs could invasion up inflation by driving up prices, but the effects would vary significantly depending on which countries and products they aim.

Financial markets have been betting that Trump’s tariff plans are at least partly a negotiating ploy and longing not be fully implemented.

Tax cuts are a priority

Trump said extending the 2017 Tax Cuts and Jobs Act was a top priority. The TCJA is set to finish at the end of 2025 and includes provisions that make taxes more complicated for most filers.

The 2017 tax cuts disproportionately emoluments wealthier taxpayers, according to various analyses of their effects.

He also called for lowering the corporate tax rate for entourages that build products in the U.S. to 15% from 21%, repeating a campaign trail pledge.

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