Trump took questions from four people, all of them in high finance and one CEO from Total Energy, Patrick Pouyanne.
On China, Trump reiterated that he does not want the U.S. to be an enemy of China, or make them an enemy. But he said the large trade gaps cannot continue. This time, the president did not use terms like “trade imbalances” and instead framed it as a matter of fairness. He also said he needed China to help as a mediator to end the Russia-Ukraine war.
One of the four panelists, Stephen Schwarzman, co-founder of private equity firm Blackstone Group, asked about regulations. He compared the red tape in Europe with the U.S. Trump gave some examples of his own battles with European Union regulations for construction projects in Ireland prior to his presidency, but then drifted into his views on trade relations. The goods deficit with the EU is second to China.
“The EU treats us unfairly,” Trump said, signaling they will be hit with tariffs soon. “They have their VAT tax on imports and it’s a big one. They don’t take our farm products and they don’t take our cars. They have a lot of non-tariff barriers,” he said. “I got a call from one of the biggest airlines in the world and he said landing in Europe is brutal, they charge us fees for everything, and I asked how that compares to landing in China and he said it is much worse in Europe. They sue Apple, they sue Google. They are after Facebook for billions and billions. As far as I’m concerned, that’s a form of taxation so we have big concerns and complaints with the EU,” he told Schwarzman.
Ana Botin, executive chairwoman at Santander Bank, inquired about Trump’s broad view of his America First trade agenda. Here, Trump singled out Canada.
“We have a tremendous deficit with Canada and we are not going to do that anymore,” he said. The goods deficit with Canada was $16.29 billion in 2017. It will likely end 2024 close to $60 billion, based on Census data through November.
“We don’t need their cars, we can make them here,” Trump said. “We don’t need their oil and gas; we have more than anybody. We are dealing with Mexico I think fairly well. I blame a lot of our trade problems on us. A part of it was on purpose but a part of it is stupidity; our politicians allowed other nations to take advantage of us.”
Trump Tells Davos: Prepare for Tariffs, “Golden Age”
President Donald Trump did a roughly one-hour video call with the World Economic Forum in Davos on Thursday, reminding those in attendance that he is serious about correcting trade imbalances.
“My message is simple…come make your product in America and we will give you the lowest taxes on earth,” Trump said, standing behind a podium with the presidential seal in Washington. “But if you don’t make it here, which is your prerogative, then you will have to pay a tariff which will direct money into our treasury designed to pay down our debt. There will be no better place to build a factory or start a company than right here in the USA.”
See Trump speak to the World Economic Forum here.
Trump was introduced by chief Davos Man himself, Claus Schwab, who said that the crowd came to “hear about your mission.” He said that “Your return to office and your forthcoming policies have been part of our discussions all week here in Davos.”
Some at Davos compared Trump’s comeback to a resurrection.
“Trump has done something no person in the world has ever done before,” said Graham Allison, a political scientist and Harvard professor recognized for his expertise in international relations and U.S. foreign policy. “A dead man, a dead politician, has risen. He is someone who Davos would have said three years ago was dead and buried. But he has returned. This is the greatest comeback in political history.”
Allison wrote “Destined for War: Can America and China Escape Thucydides’s Trap?” published in May 2017.
Trump started the panel by speaking about the Executive Orders and the America First trade agenda, released in his first 48 hours in office. “We begin the Golden Age of America,” he said, noting some investment announcements by Softbank of Japan, and Larry Ellison of Oracle fame. He said his win was a “revolution of common sense.”
Trump talked about extending the Tax Cuts and Jobs Act (TCJA), saying tariffs will be used to pay down the fiscal deficit, and noted that some Democrats would agree to renew those tax cuts. “We are working with them pretty well,” he said about the Democrats in Congress. “I think we are in good shape.”
The Senate Finance Committee Chairman, Mike Crapo (R-ID), said renewing TCJA was a top priority.
Trump took questions from four people, all of them in high finance and one CEO from Total Energy, Patrick Pouyanne.
On China, Trump reiterated that he does not want the U.S. to be an enemy of China, or make them an enemy. But he said the large trade gaps cannot continue. This time, the president did not use terms like “trade imbalances” and instead framed it as a matter of fairness. He also said he needed China to help as a mediator to end the Russia-Ukraine war.
One of the four panelists, Stephen Schwarzman, co-founder of private equity firm Blackstone Group, asked about regulations. He compared the red tape in Europe with the U.S. Trump gave some examples of his own battles with European Union regulations for construction projects in Ireland prior to his presidency, but then drifted into his views on trade relations. The goods deficit with the EU is second to China.
“The EU treats us unfairly,” Trump said, signaling they will be hit with tariffs soon. “They have their VAT tax on imports and it’s a big one. They don’t take our farm products and they don’t take our cars. They have a lot of non-tariff barriers,” he said. “I got a call from one of the biggest airlines in the world and he said landing in Europe is brutal, they charge us fees for everything, and I asked how that compares to landing in China and he said it is much worse in Europe. They sue Apple, they sue Google. They are after Facebook for billions and billions. As far as I’m concerned, that’s a form of taxation so we have big concerns and complaints with the EU,” he told Schwarzman.
Ana Botin, executive chairwoman at Santander Bank, inquired about Trump’s broad view of his America First trade agenda. Here, Trump singled out Canada.
“We have a tremendous deficit with Canada and we are not going to do that anymore,” he said. The goods deficit with Canada was $16.29 billion in 2017. It will likely end 2024 close to $60 billion, based on Census data through November.
“We don’t need their cars, we can make them here,” Trump said. “We don’t need their oil and gas; we have more than anybody. We are dealing with Mexico I think fairly well. I blame a lot of our trade problems on us. A part of it was on purpose but a part of it is stupidity; our politicians allowed other nations to take advantage of us.”
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