Trump Advocates for Lower Interest Rates and Oil Prices at Davos Forum – January 23, 2025

During his address at the Davos Economic Forum, President Trump called for lower global oil prices, interest rates, and taxes, while warning of potential tariffs on imported goods. He criticized Canada and the EU for contributing to the U.S. trade deficit and reiterated his commitment to encouraging domestic manufacturing. His remarks coincided with a drop in oil prices and currency fluctuations, as he emphasized policies aimed at deregulation and positioning the U.S. as a leader in various sectors.

Trump’s Vision for Global Economic Changes

By Echo Wang, Lananh Nguyen, and Marwa Rashad

DAVOS, Switzerland – During his address at the Davos Economic Forum, President Donald Trump expressed his desire for a reduction in global oil prices, interest rates, and taxes. He cautioned that tariffs could be imposed on products manufactured outside the United States.

Speaking through a video link to an audience of global political and business elites, Trump emphasized the need for “interest rates to be lowered immediately” in the U.S. and globally. He also urged Saudi Arabia and other OPEC nations to take action to decrease oil prices.

Trade Policies and Tariffs on Imports

The remarks made by the leader of the world’s largest economy generated significant interest, particularly as markets are on edge regarding potential tariffs on imports, a promise Trump has reiterated throughout his campaign. Although he has yet to enact a “universal customs tax,” he indicated that high tariffs on Mexico and Canada might be implemented starting February 1, with similar warnings issued to China and the European Union.

In conjunction with Trump’s address, there was a noticeable decline in oil prices, alongside fluctuations in the euro and the U.S. dollar against various foreign currencies. Trump reiterated his invitation to global companies to manufacture in the U.S., promising some of the lowest tax rates in the world. However, he made it clear that those who choose not to produce in America will face tariffs.

In his speech, Trump directed sharp criticism towards Canada and the EU, attributing the U.S. trade deficit to their policies. He stated, “We will demand respect from other nations. Canada, we have a significant deficit with you. That will not stand anymore.”

Beginning his speech to applause, Trump highlighted the changes implemented since his inauguration and took aim at his predecessor, Joe Biden, while also challenging longstanding Davos themes like climate change and diversity. He reiterated his campaign commitments, including tackling illegal immigration and reducing inflation through deregulation and tariffs, all while positioning the U.S. as a leader in fossil fuels, cryptocurrencies, and artificial intelligence.

The virtual presence of President Trump provided business leaders an opportunity to engage with him on various pressing issues. However, he repeated several misleading claims, including the assertion that the U.S. boasts the cleanest air and water in the world during his first term.

Over a thousand political figures, including Polish President Andrzej Duda, along with business leaders such as TotalEnergies CEO Patrick Pouyanné, gathered to hear Trump’s plans. Shortly after his inauguration, he signed decrees to withdraw from the World Health Organization and the Paris Climate Agreement.

(Echo Wang, Lananh Nguyen, and Marwa Rashad, with contributions from Andy Sullivan and Trevor Hunnicutt; French version by Jean Terzian, edited by Sophie Louet)

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