Washington, Oct 6 (AP) The economic expansion promised by President Donald Trump focuses on a significant figure: USD 17 trillion. This is the total new investments Trump claims to have spurred through tariffs, tax cuts, and vigorous engagement with global leaders. This bold sum is expected to usher in new factories, technologies, jobs, increased incomes, and accelerated economic growth.
“Under eight months of Trump, we've already secured commitments of USD 17 trillion coming in," the president stated in a recent speech. “There's never been any country that's done anything like that.” However, statements from various companies, countries, and the White House's own website suggest this number is not only exaggerated but speculative and significantly overstated. The White House website lists total investments at USD 8.8 trillion, padded with investment commitments initially established during Joe Biden's presidency.
Attempts to acquire clarity on the USD 17 trillion figure from Trump’s administration have been unsuccessful, highlighting an issue beyond Trump's hyperbolic statements. The strategy of using tariffs and firm rhetoric to force economic outcomes could politically backfire if results fail to materialize in terms of jobs and income growth.
A September poll by The Associated Press-NORC Center for Public Affairs revealed that only 37% of U.S. adults approve of Trump’s economic management, down from 56% at the start of his first term — a period he frequently references when appealing to voters.
Adam Posen, president of the Peterson Institute for International Economics, recognizes an increase in public commitments announced by Trump, though these add up to merely hundreds of billions instead of trillions. Such tactics, he warns, might deter future investments from countries coerced into compliance.
“It is a national security mistake because you're turning allies into colonies of a sort — you're forcibly extracting from them things that they don't see as entirely in their interest,” Posen commented. He cautioned that forcing countries to comply might not provide the desired economic benefits.
The Trump administration relies heavily on tariffs to pressure international businesses to invest domestically, a tactic past administrations have shied away from. Trump assures voters he will oversee these foreign investment commitments, which are anticipated to revitalize the job market next year.
“The difference between hypothetical investments and ground being broken on new factories and facilities is good leadership and sound policy,” White House spokesman Kush Desai remarked.
The administration claims significant investments from several countries: USD 1 trillion from Japan, USD 600 billion from the European Union, USD 1.4 trillion from the UAE over the next decade, USD 1.2 trillion from Qatar, USD 600 billion from Saudi Arabia, USD 500 billion from India, and USD 450 billion from South Korea, among others.
However, these numbers remain largely unverified and contentious. For example, Qatar's commitment exceeds its entire annual GDP fivefold, yet the White House argues its oil production secures the pledge.
There is disquiet in South Korea about its USD 450 billion commitment, which the White House claims is USD 100 billion higher, especially after immigration agents raided a Hyundai facility in Georgia, causing economic concerns regarding such sizable investments.
“From what I've seen, these commitments are worth about as much as the paper they're not written down on,” stated Jared Bernstein, former chairman of the Council of Economic Advisers during the Biden administration.
The USD 600 billion commitment from European companies stems from expressions of interest and intentions rather than concrete concessions, as per European Union documents.
For now, business investment's share of the U.S. GDP remains about 14%, consistent with pre-pandemic levels. Trump's figures may include double-counted investments announced during Biden's period or driven by the growing artificial intelligence sector.
Examples include a USD 16 billion investment by Global Foundries, where USD 13 billion was announced and incentivized during Biden’s administration, and a USD 200 billion investment from chipmaker Micron, with USD 120 billion announced previously.
White House officials credit Trump's tariffs on various products for these investments, arguing that the risk of further import taxes ensures the promised funds will enter the economy.
Pfizer CEO Albert Bourla supported this view after gaining a tariff grace period and announcing USD 70 billion of investments in the U.S.
“The president was absolutely right,” Bourla stated. “Tariffs are the most powerful tool to motivate behaviors.” “The tariffs played a big role,” Trump added. (AP) SKS SKS
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