3 Economic Takeaways From Trump’s Speech at the World Economic Forum | Global News Avenue

President Donald Trump laid out his “America First” economic platform to the international community on Thursday, pushing for tax cuts, oil extraction and tariffs.

Trump laid out his economic agenda at the World Economic Forum meeting in Davos, Switzerland, an annual summit of international business and political leaders. He has focused on expanding tax cuts enacted in 2017, using tariffs to push companies to produce within the United States and promoting fossil fuel energy over wind and solar power, repeating themes from his presidential campaign.

He’s counting on oil and gas extraction to drive down inflation

Trump says his administration will encourage U.S. oil and gas drilling

The effort began with a round of executive orders issued on his first day in office that sought to block laws signed by former President Joe Biden that would promote green energy measures. Trump says expanding energy will help curb inflation Boost cryptocurrencies and the artificial intelligence industry, both of which use lots of electricity.

“The United States has the largest reserves of oil and natural gas on the planet, and we are going to tap into it,” he said. “Not only will this lower the cost of nearly all goods and services, it will also make the United States a manufacturing superpower and the manufacturing capital of the world. . AI and cryptocurrencies. “

He also asked major oil producer Saudi Arabia OPECa cartel that controls oil prices in order to lower the cost of oil. Trump said lower oil prices would pave the way for lower interest rates.

Fed has maintained benchmark since 2022 federal funds rate higher than usual. Central bankers aim to put upward pressure on interest rates on various loans to slow economic growth and curb a post-pandemic outbreak of inflation. Trump has repeatedly called on the Fed not under direct control White House cuts interest rates despite Inflation remains high The central bank’s annual target is 2%.

“As oil prices fall, I will demand an immediate reduction in interest rates,” he said.

Trump hopes to use tariffs to push companies to make products in the United States

Trump spelled out part of his agenda, sparking controversy among economists: tariff. He said he would use import taxes to boost U.S. manufacturing.

“If you don’t make a product in the United States — and that’s your prerogative — then, quite simply, you’re going to have to pay a different amount of tariffs, but the tariffs are going to result in hundreds of billions, maybe trillions of dollars going into our Treasury. to strengthen our economy and pay down debt,” he said. “Under the Trump administration, there is no better place on earth to create jobs, build factories or grow companies than good old America.”

Despite Trump not imposing on others As he promised during the campaign, he imposed tariffs on his first day in office, threatening to impose 25% tariffs on goods from Canada and Mexico starting on February 1. He has also threatened in the past to impose tariffs of up to 60% on goods from Canada and Mexico. China and imposes tariffs of up to 20% on imports from all countries.

Economists say tariffs likely push up inflation By raising prices, but the effects vary widely depending on the country and product being targeted.

Financial markets have been betting that Trump’s tariff plan, at least in part Negotiation strategy And it won’t be fully implemented.

Tax cuts are top priority

Trump said extending the 2017 Tax Cuts and Jobs Act is a top priority. TCJA expires at the end of 2025, includes tax provisions More complex for most filers.

The 2017 tax cuts disproportionately benefited wealthy taxpayers, according to various analyzes of their impact.

He also called for lowering the corporate tax rate on products produced in the United States from 21% to 15%. Repeat campaign promises.