Trump Warns Davos of New Tariffs, Urges Companies to Manufacture in the U.S.
Thank you for reading this post, don't forget to subscribe!Jan 23 (Reuters) – U.S. President Donald Trump issued a strong warning to global businesses during the World Economic Forum in Davos, Switzerland, urging them to move manufacturing operations to the United States to avoid tariffs and benefit from low tax rates. Speaking via videoconference from Washington, Trump announced plans for tariffs on imports from all countries unless they bring production to American soil.
“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,” Trump stated during his address to a panel of business leaders.
Trump also proposed a 15% corporate tax rate for companies that manufacture in the U.S., pending approval from Congress. He emphasized that those who choose not to manufacture in the U.S. would face tariffs of varying amounts. “If you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff,” he said, adding that the revenue generated would strengthen the U.S. economy and pay down the national debt.
Targeting Canada, Mexico, and China
Trump criticized Canada for its trade practices, claiming the country benefits from a massive trade surplus with the U.S., which he inaccurately estimated as $200–$250 billion annually. In reality, U.S. Census Bureau data shows Canada’s goods surplus with the U.S. was $64.3 billion in 2023, driven by American imports of Canadian oil and petroleum products. Trump went on to suggest that Canada could avoid tariffs by becoming the “51st U.S. state.”
“We don’t need their cars, their lumber, or their oil and gas. We have more than anybody,” Trump said, dismissing Canada’s importance as a trading partner. He warned that new tariffs on Canada and Mexico could dismantle the decades-old duty-free trade framework of the North American Free Trade Agreement (NAFTA).
China also faced criticism, with Trump condemning the “massive” U.S. trade deficit with the country, which he claimed was $1.1 trillion—again misstating the figure. The actual goods trade deficit with China stood at $279.1 billion in 2023, significantly reduced from its 2018 peak of $418.2 billion. Trump emphasized the need for a “fair relationship” with China, saying, “Right now, it’s not a fair relationship.”
Oil Prices and Global Tariff Policy
Trump pledged to pressure Saudi Arabia and OPEC to lower oil prices while reiterating his administration’s intent to implement tariffs globally. These tariffs, he explained, would vary by country and potentially bring trillions of dollars into U.S. Treasury coffers.
Uncertainty Around Tariff Implementation
Despite his strong rhetoric, Trump did not provide concrete details on when or how these tariffs would be imposed. Many of his top economic cabinet picks, including Treasury Secretary nominee Scott Bessent, Commerce Secretary nominee Howard Lutnick, and U.S. Trade Representative nominee Jamieson Greer, were still awaiting Senate confirmation.
Senate Majority Leader John Thune indicated that the Senate may vote on Bessent’s nomination soon, but hearings for other key nominees remain unscheduled.
Trump’s remarks at Davos reinforce his administration’s commitment to reshaping global trade relations by prioritizing American manufacturing, pressuring foreign economies, and leveraging tariffs as a tool to secure economic dominance.
