WASHINGTON (AP) — The economic boom promised by President Donald Trump is focusing on a single $17 trillion figure.
That’s the sum of new investments Trump claims to have created with him. Customsincome tax cuts and Offensive salesmanship CEO, investor, high-tech titan prime ministerthe president and other rulers. $17 trillion is supposed to fund new factories, new technology, more jobs, higher incomes and faster economic growth.
“In less than eight months for Trump, we already have a $17 trillion commitment,” the president said in a speech last month. “Never has ever done that.”
However, based on statements from various companies, foreign and the White House’s own websites, the numbers seem exaggerated, highly speculative, and much higher than the actual total. White House Website The total investment is listed at $8.8 trillion, but that figure appears to be padded with the commitments of several investments made during Joe Biden’s presidency.
The White House did not lay out the mathematics after multiple requests regarding how Trump calculated $17 trillion in his investment commitment. But this issue is based on his belief that tariffs and corporate shame fields can have economic consequences, beyond Trump’s hyperbolic views. This is a strategy to lie in politically if the tough story doesn’t translate into more jobs and higher incomes.
Only 37% of US adults have approved Trump’s economic handling, September polls According to the Associated Press Civil Servant Center. This fell from the 56% peak in early 2020 during Trump’s first term. This is a memory of my reliance on courting voters in last year’s election.
Adam Posen, president of the Peterson Institute for International Economics, said Trump’s public commitments represent a “meaning increase,” but that amounts to hundreds of millions of dollars rather than hundreds of millions of dollars. Still, countries are less likely to invest in the US after being threatened with doing so, which brings in long-term costs.
“It’s a national security mistake because we’re turning our allies into some sort of colony. We’re forcing them to extract them from what they’re not entirely seen in their interest,” Posen said. “Twisting the government arm and twisting your business arm will not give you the reward you want.”
Trump is banking foreign banks that are making their promises well
The Trump administration bets that tariffs are an effective tool for other countries and international companies to invest in the United States. Trump’s pitch to voters is for him to play a role in directly managing his foreign investment commitments, reviving the job market where that money allocation will flag it from next year.
“The difference between virtual investment and broken ground in new factories and facilities is good leadership and sound policies,” said White House spokesman Kush Desai.
The White House said Japan will primarily invest $1 trillion in Trump’s instructions. The European Union commits $600 billion. The United Arab Emirates has made a $1.4 trillion commitment over a decade. Qatar has pledged $1.2 trillion. Saudi Arabia intends to ponies, among other things, $600 billion, India $500 billion, and South Korea $450 billion.
The challenge is that the exact terms of these investments are not yet fully codified and publicly available, with some numbers still under controversy, potentially fuzzy mathematics, or, in the case of Qatar, more than five times the national total annual production. The White House claims that Qatar is good for money as it produces oil.
South Korea is already worried about its investment commitment. That’s $100 billion less than what the White House claims after immigration agents Aggression of modern plants A Korean citizen was arrested under construction in Georgia. There are also concerns that large investments could hurt South Korea’s economy without a better way to exchange currency with the US.
“From what I’ve seen, these commitments are just as valuable as papers they haven’t written down,” said Jared Bernstein, chairman of the Biden White House Economic Advisors Council.
According to European Union documents, the $600 billion committed by European companies is based on companies that have “expressed interest” by companies that have “expressed interest” and have “intention” by 2029 and “intention” by 2029, according to European Union documents.
It’s too early to see the impact of investment on the economy as a whole
So far, there has yet to be a significant boost to business investment in terms of percentage of US gross domestic product. In terms of overall economy share, President Trump’s first six months of business investment has consistently bounced back to around 14%, just as before the pandemic.
But economists also note that Trump is a double count and relies on investments originally announced during investments that are already likely to occur due to the Biden administration or artificial intelligence.
For example, the White House lists a $16 billion investment from computer chip maker Global Foundries. But of that total, more than $13 billion was announced during the Biden administration, supported by the 2022 Chips and Science Act and $1.6 billion grants from other state and federal incentives.
Similarly, the White House has a $200 billion bank invested by chipmaker Micron, with at least $120 billion of which was announced during the Biden era.
“Taxes played a major role.”
White House officials primarily trust Trump’s tariffs — the tariffs imposed on kitchen cabinets, heavy trucks and pharmaceutical drugs on October 1 will force businesses to invest in the US and guarantee the risk of additional import taxes to ensure that the cash promised by the state and businesses enter the economy.
On Tuesday, Pfizer CEO Albert Bourra supported the approach His pharmaceutical company received a three-year grace period on tariffs Announced $70 billion investment in the US
“The president was absolutely right,” Brula said. “Taxes are the most powerful tool for motivating actions.”
“Taxes played a big role,” Trump added.
