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Leaders grapple with their own message as Trump 2.0 debuts at Davos

CGTN

US President Donald Trump is expecting up to trillions of dollars in tariff revenue from companies that make their products outside the US, according to his remarks at the World Economic Forum (WEF) Annual Meeting 2025 in Davos.

On the other hand, those companies that manufacture in the US will benefit from a lower 15 percent corporate tax rate as opposed to the prevailing 21 percent, said Trump.

Addressing the forum virtually, he criticized the European Union, which he said makes it difficult for US products to enter the European market due to high tariffs along with restrictive and time-consuming regulations.

Across sessions, world and institutional leaders as well as industry giants shared insights on how Trump's tariffs plan and policies may impact the global economy.

Ngozi Okonjo-Iweala, Director-General at the World Trade Organization (WTO), warned that a tariff war doesn't benefit anyone, opining that if the world had tit-for-tat retaliation, whether it's a 25 percent tariff or 60 percent, we would go back to the 1930s era and see double-digit global GDP losses, which would be catastrophic.

Raising tariffs is not the right tool to address economic or national security concerns, said European Commissioner for Economy and Productivity Valdis Dombrovskis. He recommended that the US President instead focus on tackling economic inequality.

Additionally, European Central Bank (ECB) President Christine Lagarde told CNBC that Europe must "be prepared" and anticipate the potential trade tariffs of newly inaugurated US President Trump.

(Cover via CFP)

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