Pakistan Today

Trump warns Davos on unfair trade, says US ‘open for business’

 

US President Donald Trump took his “America First” message to the world’s elite on Friday, telling a summit of business and political leaders that the United States would “no longer turn a blind eye” to what he described as unfair trade practices.

Trump became the first sitting US President to address the annual conclave of the rich and powerful at the Swiss ski resort of Davos for 18 years, closing the summit with a mostly upbeat speech that declared the United States “open for business”.

“Now is the best time to bring your money, your jobs, your businesses to America,” he said, singling out tax cuts and curbs to regulation as boosting the investment climate. “The world is witnessing the resurgence of a strong and prosperous America.”

He said he would always promote “America First”, as he expected other world leaders to do on behalf of their own countries, but added: “America First does not mean America alone. When the United States grows so does the world.”

But he swiftly turned to a theme of demanding tougher enforcement of trade rules, accusing unidentified countries of unfair practices, including stealing intellectual property and providing state aid to industry.

“We will enforce our trade laws and restore integrity to the trading system. Only by insisting on fair and reciprocal trade can we create a system that works not just for the United States but for all nations,” Trump said.

“The United States will no longer turn a blind eye to unfair trade practices,” he said. “We cannot have free and open trade if some countries exploit the system at the expense of others.”

His speech was mostly met by polite applause, although he drew some jeers and whistles during a question and answer session, when he attacked the news media: “It wasn’t until I became a politician that I realized how nasty, how mean, how vicious and how fake the press can be,” he said.

While he has a record of opposing trade agreements involving multiple countries, he said the United States would seek bilateral deals with individual states. That could include members of a Trans-Pacific trade agreement from which he has withdrawn, he said, adding he would consider negotiating with them collectively if it was in the U.S. interest.

Before his trip to Davos, Trump imposed 30 percent tariffs on imported solar panels, among the first unilateral trade restrictions made by the administration as part of a broader protectionist agenda.

The Trump administration’s debut at Davos also caused a storm because of comments by Treasury Secretary Steven Mnuchin, who said earlier this week the United States benefited from a lower dollar, which would make its exports cheaper.

Those remarks sent the U.S. currency tumbling and drew sharp rebukes from the European Central Bank chief and other figures, who view countries talking down their own currencies as a violation of unwritten rules to keep trade balanced.

Mnuchin told CNBC television on Friday he was “absolutely not trying to talk down the dollar” and that his remarks had been taken out of context. “What I said was actually very even-handed and consistent with what I said before.”

On Thursday, Trump said he ultimately wanted the dollar to be strong. US officials said there was no disagreement between Trump and Mnuchin, and the Treasury Secretary had been making a factual observation about the impact of a lower dollar, not announcing a policy preference to drive it down.

 

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