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By Peter Aitken and Gabe Whisnant
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In a Thursday address to the World Economic Forum, President Donald Trump promised global elites they would receive lower taxes if they relocated manufacturing to the U.S. and threatened to impose tariffs if they do not.
Newsweek reached out to the White House for comment on Thursday afternoon.
Why It Matters
Trump has threatened to use universal tariffs to try and drive business up in the United States. Many assumed this was merely to take a more "America First" approach to supporting businesses, but his remarks at Davos show that he likely will view all business in the U.S. - including foreign companies - as part of that business landscape.
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After taking office earlier this week, the president once again floated the idea of a universal tariff, saying that it was necessary because "essentially countries take advantage of the U.S.," even as he acknowledged the country was "not ready for that yet," referring to a universal tariff.
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What to Know
Trump spoke via video from the White House to the annual summit in Davos, Switzerland, on his third full day in office, Trump highlighted his series of executive actions since his inauguration and asserted that he had a "massive mandate" from the American people to enact change. He proposed a carrot-and-stick strategy to encourage private investment in the U.S.
"Come make your product in America and we will give you among the lowest taxes as any nation on earth," Trump said. "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."
One of the factors Trump touted as a major attraction to operating in the U.S. would be a lower corporate tax rate, which he told the Davos panel he would look to bring down to 15 percent, but only "if you make your product in the U.S.," saying that rate would be "as low as it gets."
Trump has previously suggested a universal tariff of around 20 percent, but he has also suggested higher, selective tariffs: 25 percent tariffs on Canada and Mexico in order to pressure them to take action against fentanyl and illegal immigration; and a 60 percent tariff on Chinese products.
At Davos, Trump said that companies that do not make their products in the U.S. could see a tariff of around 21 percent, and argued that his cut to 15 percent for those making products stateside would "create a tremendous buzz."
Also, during his virtual remarks, Trump said he was going to ask Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) to bring down the price of oil.
What People Are Saying
Pro-Trump influencer "Johnny MAGA," an account with over 200,000 followers on X, formerly Twitter, wrote: "HOLY SMOKES. Trump just told the WEF that companies who move to America will pay the lowest taxes in the industrialized world, and that companies that don't will pay trillions of dollars in tariffs into the U.S. Treasury to pay down our debt. Amazing."
What Happens Next
The Davos Economic Forum ends on Friday, after which business leaders will return to their companies. Trump will continue his flurry of executive orders and seeking to have his nominees for various Cabinet positions approved so that he can fully roll out his agenda across the federal government.
Update: 1/23/25, 1:26 p.m. ET: This article has been updated with additional information.
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