US EditionStudy Questions if $5 Trillion in Foreign Investment Pledges Will Materialize
Peterson Institute researchers highlight uncertainty in $5 trillion foreign investment pledges to the U.S. due to nonbinding terms, unclear metrics, and potential legal challenges.
- On Tuesday, the Peterson Institute for International Economics study found major trading partners pledged more than $5 trillion last year to invest in the United States but raised doubts about the funds materializing.
- Negotiations under duress led to investment pledges after President Donald Trump used threats of punitive tariffs to secure commitments, White House spokesman Kush Desai said, though trading partners may seek to escape them.
- The White House cites $9.6 trillion in commitments while President Donald Trump has cited $17 billion or $18 billion, and the European Union's $600 billion pledge carries no legally binding commitment.
- A court ruling expected as early as February could undercut the tariffs used to secure the agreements, and the administration says it can revisit tariff rates or impose alternative tariffs if trading partners back out.
- Peterson Institute for International Economics researchers say realized investments could create jobs, boost growth, and strengthen supply chains in the United States, but warn of long-term risks: opaque selection, weak accountability, and political criteria, with some Gulf states' commitments large relative to their resources.
48 Articles
48 Articles
Top U.S. trading partners pledged to invest $5 trillion in America, but researchers have doubts
President Donald Trump has strong-armed many of America’s biggest trading partners into pledging trillions of dollars of investment in the United States. But a study out Tuesday raises doubts about whether the money will actually materialize and questions how it would be spent if it did. “How realistic are these…
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Top US trading partners pledged to invest $5 trillion in America. These researchers have doubts. - The Boston Globe
President Trump used the threat of punitive tariffs – import taxes – to pry concessions out of those trading partners, including the investment pledges.
Associated Press News
Top US trading partners pledged to invest $5 trillion in America. These researchers have doubts.
President Donald Trump strong-armed America’s biggest trading partners into pledging trillions of dollars of investment in the United States.
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