On January 23, US President Donald Trump urged global business leaders to manufacture products in the United States to benefit from low tax rates and avoid import tariffs. Speaking via videoconference at the World Economic Forum in Davos, Switzerland, Trump warned that tariffs of varying rates could be imposed on imports from all countries.

"My message to every business worldwide is simple: produce in America, and you’ll enjoy some of the lowest taxes globally. If you choose not to, you’ll face tariffs," Trump stated. He added that these tariffs would generate significant revenue for the US Treasury, helping to strengthen the economy and reduce national debt.

Trump has proposed a 15% corporate tax rate for companies manufacturing in the US, pending congressional approval. Despite campaign promises to impose tariffs immediately, Trump began his presidency without enacting them. He hinted at a 10% tariff on global imports and a 60% tariff on Chinese goods but deferred the decision to February.

Trump criticized Canada and Mexico for illegal immigration and drug trafficking, suggesting tariffs of 25% on their exports. Although the February 1 deadline for China was extended, Trump warned the European Union could also face tariffs. He particularly singled out Canada, accusing it of a trade surplus that he exaggerated as between $200 billion and $250 billion, compared to the actual figure of $64.3 billion in 2023. Trump claimed Canada could avoid tariffs by becoming the 51st US state and argued the US was self-sufficient in resources like oil, gas, and lumber.

Trump’s tariff plans, if enacted, would effectively dismantle the North American free trade agreement, which has ensured duty-free trade for over 30 years.

Regarding China, Trump called for fair trade practices and criticized the US trade deficit with the country. While he inaccurately cited the deficit as $1.1 trillion, the actual figure for 2023 was $279.1 billion, down from $418.2 billion in 2018. Trump emphasized the need for a level playing field to ensure a fair trade relationship with China.

Disclaimer: This image is taken from Reuters