Donald Trump recently claimed that a wave of new tariffs will bring trillions of dollars in overseas investments. This massive influx will provide an unprecedented economic stimulus to the U.S. economy. Throughout the trip, which included multiple stops in the Middle East, Trump underscored a series of compelling investment prospects. He unconvincingly asserted that the U.S. is headed toward $12 trillion in deficits under his watch. Key discussions included French luxury goods giant LVMH exploring expansion in the U.S. market and the olive oil producer Dcoop contemplating increasing its production stateside.
At a roundtable event in the United Arab Emirates, Trump expressed optimism about foreign investment, stating, “There’s never been anything like it. We’re at a level that no country has seen.” He noted what a big deal it was that his administration’s planning and policy work has started to set the stage for future investments. The administration pointed to a huge $50 billion investment commitment by Roche, the biggest pharmaceutical company in the world. That’s because this investment is right now being put in jeopardy by an executive order to lower drug prices.
Though as of now, such claims have yet to bear fruit, as local economic officials lament the lack of expected foreign investments following the announcement. Kush Desai, a White House spokesperson, declared that gross domestic investment exploded by 22 percent. This jump came at the very beginning of this boom, the first quarter of 2025. Industry analysts predict that investments may slow as uncertainty surrounding Trump’s fluctuating trade policies continues to impact foreign businesses’ willingness to commit funds to the U.S. market.
Economic development officials from all states have expressed alarm at this unexpected uncertainty. North Carolina’s Commerce Secretary Lee Lilley made a great analogy that reflected the current investment climate to driving a car in the fog. He added that businesses won’t commit without a firmer picture.
“One of our contacts described it to me as driving a car in the fog,” – Lee Lilley, North Carolina’s Commerce Secretary
Of all the projects, some are moving along more quickly than others, reported Michelle Grinnell, senior vice president for market growth and business attraction in Michigan. Others have experienced setbacks due to tariffs. “Some of those timelines have slowed a little bit, especially projects that are maybe earlier in the process,” she noted.
Senator Ron Johnson (R-Wisc.) expressed comparable thoughts, saying that a lot of businesses are ‘waiting on the sidelines’ right now on investments.
“What I’m hearing from Wisconsin businesses, manufacturers, the National Association of Manufacturers, The Business Roundtable, is right now investment is on hold,” – Sen. Ron Johnson (R-Wisc.)
The wider manufacturing sector has been hit hard by these continued trade tensions. Auto manufacturing jobs fell 4.7 percent from March to April. This decrease came on the heels of Trump’s 25 percent tariffs on imported foreign autos. Honda recently announced it was moving production of its popular CRV model from Ontario to the U.S. This action is yet another signal of the Administration’s confidence in American Manufacturing.
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