Trump plans to lower oil costs and bring manufacturing back to the US

Investing.com — President Donald Trump recently addressed world leaders at Davos and outlined his plans to lower oil costs and bring manufacturing back to the United States. He stated his intention to ask Saudi Arabia and other OPEC nations to reduce oil prices, and reiterated his threat to use tariffs to drive manufacturing back to the US.

Trump also expressed his desire for an immediate reduction in interest rates, blaming high rates for economic difficulties under the tenure of his predecessor, Joe Biden. He attributed these economic issues to $8 trillion in wasteful deficit spending and restrictive energy policies.

In his address, Trump stated his second term would focus on using tariffs to encourage manufacturing in the US. He warned that products not made in the US would be subject to tariffs, which he said would direct billions, and potentially trillions, of dollars into the US Treasury.

Trump also praised commitments by companies to invest in the US, such as SoftBank (TYO:) Group Corp.’s plans to build artificial intelligence infrastructure and Saudi Arabia’s Crown Prince Mohammed Bin Salman’s promise to expand investments and trade with the US by $600 billion. Trump said he would push the crown prince to increase that figure to $1 trillion.

The president predicted that lower oil prices could decrease inflation and allow for the reduction of interest rates. He also suggested this could pressure Russia to end the war in Ukraine.

Following his opening remarks, Trump answered questions from WEF President Borge Brende and a select group of executives, including Blackstone (NYSE:) Inc.’s Stephen Schwarzman, Bank of America Corp (NYSE:).’s Brian Moynihan.

In his current term, Trump has pledged to crack down on undocumented migration and reiterated plans to impose tariffs on Mexico and Canada. He also indicated that tariffs on China and the European Union remain on the table.

Trump has also moved to undo Biden-era policies on climate change, while boosting US fossil fuel production and filling up depleted oil reserves. His plans to increase domestic energy production come as European industry grapples with soaring energy costs.

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