Trump's Economic Vision: Foreign Investment, Tax Cuts, and More Tariffs to Boost US Economy

Former U.S. President Donald Trump is set to deliver an economic speech in Savannah, Georgia.

According to information revealed by Trump's senior advisor, Trump will propose an economic policy combination in his speech: on one hand, Trump promises to personally recruit foreign companies to operate in the United States and outlines a series of incentives to attract foreign investment - including tax cuts, reduced regulation, and the provision of federal land. On the other hand, he will once again threaten to impose severe tariffs on imported products.

Trump Is Expected to Present a Major Economic Plan

Clearly, with only six weeks left before the U.S. election, Trump is trying to use this speech to shape himself as the best economic manager of America.

Considering that the economy is currently the most concerning issue for American voters, Trump's speech is well-intentioned, and the timing and location of the speech are carefully chosen.

Trump chose to elaborate on his economic plan on Tuesday this week, probably because his Democratic rival, Harris, is expected to outline her economic vision during her campaign event in Pittsburgh on Wednesday, and Trump's speech can take the initiative.

The choice of Savannah as the location for the speech also has deep meaning. Savannah is located in Georgia, which is a key swing state in this election. Savannah itself is a developing port city, indicating that Trump hopes to accelerate the transformation of the U.S. economy into an exporter of domestic manufactured goods.

Polls have consistently shown that although Harris's support has been rising recently, people still support Trump more in terms of economic policy.

Trump Promises to Attract Foreign Investment

According to a campaign assistant, Trump is expected to say in his speech on Tuesday that if he wins a second term, his government will take away jobs and factories from other countries, bringing trillions of dollars to the United States.

Trump will say in his speech that he intends to attract foreign manufacturers to the United States by lowering corporate tax rates, reducing regulation, reducing energy prices, building strong ports, and even providing federal government land.

However, some of the policies mentioned by Trump (such as lowering corporate tax rates) require approval from Congress. As for the specific details of his so-called provision of federal land, his campaign team has not disclosed them.

Trump Will Reiterate Tariff Threats

Trump also threatened that if overseas companies refuse to move their manufacturing operations to the United States, they will be affected by tariffs. Trump has previously emphasized his tariff threats many times, such as imposing tariffs on other countries including the European Union, and the tariffs on Chinese products could even reach 60%.

However, many economists have criticized Trump's tariff plan. Especially his claim that relying on tariffs to make up for fiscal deficits is mathematically unfeasible.

The Peterson Institute for International Economics estimates that if the Trump administration imposes a 10% tariff on all imported goods, plus a 60% tariff on China, then without considering retaliatory measures taken by other countries, the Trump administration can raise $225 billion a year through tariffs.

However, according to the analysis of the Wharton Budget Model of the University of Pennsylvania, the tax cuts and fiscal expenditure promises launched by Trump so far will increase the U.S. federal deficit by $5.2 trillion to $6.9 trillion in the next decade - this means that Trump's tariff revenue is far from enough to make up for this gap.