Trump threatens tariffs in global economic address
US President Donald Trump has threatened countries with tariffs that could cost “trillions of dollars” unless businesses make their products in America.
Trump was giving a virtual address to the World Economic Forum in Davos, Switzerland, on Friday morning (AEDT).
Appearing via video before global leaders, Trump said that companies should set up manufacturing operations in the United States.
“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,” said Trump.
“But if you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff.
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“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.”
Trump also reportedly drew shocked gasps at the forum when he blatantly suggested that Canada should “become a state” of the US.
He said he planned to reverse the current situation of the US importing more from Canada than it exports.
“We have a tremendous deficit with Canada. We’re not going to have that anymore,” he said.
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“We don’t need them to make cars, we don’t need their lumber because we have our own forests, we don’t need their oil and gas because we have more than anybody.”
Trump said he had a solution to the trade imbalance.
“I said to them, you can always become a state, and if you’re a state we can have a deficit and we won’t have to tariff you.”
Trump began his presidency on Monday without immediately imposing the tariffs he had promised voters, including a 10 per cent duty on global and 60 per cent on Chinese goods.
But he said that Canada and Mexico faced a 25 per cent duty on February 1 on goods they ship to the US because of illegal immigration and illicit drug shipments across US borders.
Trump on Tuesday extended the February 1 deadline to China, threatening a 10 per cent duty, and said the European Union would also face tariffs.
“We’re going to be demanding respect from other nations.”
Trump also said he would promote the fossil fuel industry and roll back climate rules put in place by his predecessor Joe Biden.
He said he would put pressure on the Saudi-led OPEC oil cartel to bring down prices.
“I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil. You got to bring it down, which frankly, I’m surprised they didn’t do before the election,” he said.
-with DPA
