Posted on 24 Jan 2025
Donald Trump said Thursday that companies should set up shop in the US, or else pay tariffs to import products into the country.
Speaking remotely at the World Economic Forum in Davos, Switzerland, he promised companies “the lowest taxes of any nation on Earth.”
“We’re bringing them down very substantially, even from the original Trump tax cuts,” he said in a livestream monitored by Kallanish Power Materials. In 2017, the Trump administration slashed the corporate tax rate from 35% to 21%.
“But if you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff, 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,” he adds.
Extending the tax cuts that Trump enforced in 2017 would cost $4.2 trillion between 2026 and 2035, according to government estimates. Tariffs would not be enough to cover it, as the nonprofit Tax Foundation calculates that a 10% universal tariff would raise $2 trillion and a 20% universal tariff would raise $3.3 trillion from 2025 through 2034.
In 2018, the Congressional Budget Office estimated that the 2017 tax cuts would cost $1.9 trillion over ten years. However, the results have been skewed by the effects of the Covid-19 pandemic.
Earlier in the week, Trump said that OpenAI, Oracle and SoftBank teamed up to create a new joint venture, called Stargate, and invest $500 billion in AI infrastructure in the US. Saudi Arabia is also considering a $600 billion investment into the country, although it is not clear what type of projects will be covered.
Source:Kallanish Power Materials
