US President Donald Trump has invited global businesses to manufacture their products in the US and promised them lower taxes but also issued a stern warning that if they choose to produce their goods elsewhere, they would have to pay tariffs worth ‘billions and trillions’ of dollars.

While virtually addressing the World Economic Forum (WEF) in Davos on Thursday,Trump threatened business leaders with tariffs if they don’t manufacture in the US. “I am going to pass the largest tax cuts in American history to help our people,” he reportedly said.

“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,” he said.

For businesses choosing not to manufacture in the US, Trump warned, “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.”

He further asserted that there is “no better place” than the “good old USA” to create jobs and build factories under the Trump administration.

“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,” he added.

Trump has proposed a 15%  corporate tax rate for companies that manufacture in the US, subject to approval from Congress.

Trump began his presidency on Monday without immediately imposing the tariffs he had promised during his election campaign, including a 10 per cent duty on global imports and 60% on goods from China.

But he said at that time that Canada and Mexico faced a 25% duty on February 1 on goods they send to the US because of illegal immigration and illicit drug shipments, including fentanyl, across their US borders. Trump on Tuesday extended the February 1 deadline to China, threatening a 10% duty.

Referring to the relations with Canada, the US President noted that the US has been at a deficit of nearly $200 billion or $250 billion with Canada, which he argued was unfair.

He again reiterated his point to make Canada the 51st US state, adding that in that case, there would be no need to impose a tariff on it.

“Canada, we have a tremendous deficit with Canada. We’re not going to have that anymore. We can’t do it. It’s, I don’t know if it’s good for them. 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,” he said.

“But Canada has been very tough to deal with over the years, and it’s not fair that we should have a $200 billion or $250 billion deficit,” he added.

Trump also highlighted that the US no longer relies on Canada for products like cars, lumber, and 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.

“Stupid politicians”

Trump blamed politicians for not taking initiatives to maintain US dominance in the world. He said the “stupidity” of politicians allowed China and other countries to overtake America in global trade. “I’ll not allow that to happen again,” he said.

Calling the relationship “unfair”, Trump said the US doesn’t want to take any advantage but wants fairness.

He also criticised the Biden administration for allowing the trade deficit to go “out of hand”.

“It is just an unfair relationship. We have to make it just fair...All we want is fairness. We just want a level playing field. We don’t want to take advantage. We have been having massive deficits with China. Biden allowed it to get out of hand...It is just an unfair relationship. We have to make it fair. We don’t have to make it phenomenal, we have to make it a fair relationship. Right now, it’s not a fair relationship,” he said.

Trump pointed out that the US has been running large deficits with many countries, particularly in Asia, and stressed the need to address these imbalances.

“The deficit is massive as it is with other countries, a lot of Asian countries. But we have deficits that are very big and we can’t keep doing that. So, we are not going to keep doing that,” he said.

(Compiled from syndicated feed)

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