Mon, 16 Jun 2025

Mon, 16 Jun 2025 The reality behind Trump's incredible investment claims

The president's impact on investment in the US is far more incremental than he has claimed.
Goldman Sachs analysis found that new investment stemming from announcements likely totals around $134bn, but this figure shrinks to as little as $30bn once risks and failed projects are factored in. The White House defends its claims by citing a multifaceted approach to driving investment into the US, but many companies on the list have acknowledged that work on some of their projects pre-dated the current administration. Experts suggest that Trump's policies may be having an incremental effect on business investment, rather than a dramatic impact. Tariff threats have prompted pharmaceutical firms to plan more manufacturing in the US, but this growth is expected to unfold over time and may not address underlying issues such as industry consolidation. Many analysts expect investment growth to slow in the US this year due to policy uncertainty. Economist German Gutierrez argues that Trump's emphasis on global competition misdiagnoses the problem of declining investment, which he attributes to industry consolidation and cheaper investments in software rather than machines and factories. Tariffs are unlikely to address these issues, and may even have negative consequences for certain industries.
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