By Echo Wang, Marwa Rashad, and Trevor Hunnicutt
DAVOS, Switzerland (Jan. 23, 2025) – Reuters
U.S. President Donald Trump addressed the World Economic Forum in Davos, Switzerland, via video on Thursday, urging global leaders and businesses to lower interest rates and oil prices while reiterating his tariff-driven economic agenda. Trump warned that companies manufacturing products outside the United States would face tariffs as part of his plan to bolster the domestic economy.
“I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world,” Trump declared. He also vowed to pressure Saudi Arabia and OPEC to reduce oil prices.
The speech, delivered just four days into Trump’s second term, set a combative tone for his administration’s economic policy. Trump promised to prioritize domestic manufacturing and energy production, positioning the United States as a global hub for fossil fuels, artificial intelligence, and cryptocurrency.
Tariffs, Trade, and Economic Policy
Trump reaffirmed his commitment to imposing tariffs on nations with trade surpluses against the U.S., particularly Canada and the European Union. “We’re going to be demanding respect from other nations,” he said, criticizing Canada’s trade practices and trade deficits, which he inaccurately cited as “tremendous.”
While Trump highlighted tariffs as a way to reduce inflation and strengthen the U.S. economy, he did not outline specific steps for their implementation. His remarks caused oil prices to dip into negative territory while the S&P 500 hit near-record highs.
Trump also pushed for deregulation and corporate tax cuts, proposing that these measures would reduce inflation and make the U.S. a manufacturing powerhouse. “The United States has the largest amount of oil and gas of any country on Earth, and we’re going to use it,” he said.
Criticism of Allies and Previous Policies
The president’s sharpest criticism was directed at traditional U.S. allies, including Canada and the European Union, accusing them of exploiting trade relationships with the U.S. He also criticized previous policies on diversity, climate change, and immigration, claiming his administration would reverse these measures.
Trump singled out Canada for allowing trade surpluses and suggested renaming the Gulf of Mexico as the “Gulf of America,” sparking mixed reactions.
Nuclear Arms and Talks with Russia
Trump revealed plans to engage in talks with Russian President Vladimir Putin on nuclear arms reduction and the war in Ukraine, aiming to involve both Russia and China in discussions to reduce global stockpiles.
However, his speech included several familiar falsehoods, including claims about U.S. environmental achievements and a nonexistent “Green New Deal.” Trump also faced criticism for pardoning over 1,500 individuals involved in the January 6 Capitol attack, drawing outrage from lawmakers and police officials.
Reactions from Davos Attendees
Trump’s speech received mixed reactions from the 3,000 attendees at Davos. Some business leaders praised his focus on fostering growth in the U.S., while others expressed concerns about his protectionist policies.
Espen Barth Eide, Norway’s foreign affairs minister, said, “It’s not particularly strange that you want to foster growth in your own country. But of course, we believe that we are better off in the world of free trade, where we exchange goods and services openly.”
Trump’s aggressive tone underscored his vision of reshaping global economic norms, positioning the U.S. as a leader in trade, energy, and innovation while threatening tariffs against nations that fail to align with his policies.
