Feb. 18, 2025, 8:30 a.m.

USA

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Trump Davos speech: pressure oil prices, lower interest rates and lift tariff war

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Addressing political and business leaders at the annual meeting of the World Economic Forum in Davos by video, President Donald Trump said he would urge Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries to "drive down the cost of crude oil" and reiterated that he would use tariffs to drive manufacturing back.

In a speech on Thursday, Trump said a key part of his second term would be to use tariffs to drive manufacturing back to the United States. If they do not make goods in the United States, they will face tariffs of "hundreds of billions of dollars or even trillions of dollars."

Trump said his message to businesses around the world is "make your products in the United States of America" and "if you don't make your products in the United States of America, which is your natural privilege, then very simply you're going to have to pay tariffs, varying amounts, but tariffs that are going to add hundreds of billions and trillions of dollars directly into our coffers." He also promised to cut the corporate tax on products made in the United States to 15 percent.

Trump also criticized the EU for having too high tariffs, too restrictive regulations and too large trade deficits with the United States. He said he would do something about it because it was "very, very unfair to the United States."

Bloomberg quoted Trump as saying he would demand an immediate reduction in interest rates. Trump claims that high interest rates under former President Joe Biden increased the deficit and led to economic disaster.

"The first step is to face up to the economic mess created by the failed policies of the previous government... "Over the past four years, our government has squandered $8 trillion in deficit spending and has saddled our nation with unprecedented destructive energy restrictions, paralyzing regulations, and hidden taxes."

Trump also said he plans to massively intervene in the world oil market and called on OPEC countries such as Saudi Arabia to "lower the cost of oil." He told the leaders that if the bloc pushed down oil prices, inflation would also fall, creating room for lower interest rates. He said it would also put pressure on Russia to force an end to the war in Ukraine.

"As oil prices go down, I will demand that interest rates go down immediately," Trump said, "and likewise they will go down all over the world."

Asked whether the United States would guarantee gas supplies to Europe, he said he would strike an energy deal with Europe and stressed the importance of U.S. liquefied natural gas shipments to the EU.

When it comes to China-Us relations, he believes that the relationship between the United States and China will be "very good", but it must also be "fair".​ In addition, Trump expressed hope that Beijing can help stop Russia's war in Ukraine. "They have a huge influence on what happens there," he said. Trump said the United States would work to ensure the conflict was resolved peacefully.

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