FOX Business host Larry Kudlow discussed the White House’s focus on boosting manufacturing on the show “Kudlow.”
President Donald Trump’s trade policy decisions are intricately linked with his tax cuts and deregulation moves, aligning closely with his tariff strategy. The global trading system has faced issues for decades, with the United States often being subjected to unfair practices. Consequently, there is a call to address these disparities.
President Trump aims to encourage re-shoring and halt the trend of offshoring, while also strengthening the American manufacturing sector. This sector has been significantly impacted by the globally unfair trading practices targeting the U.S.
Individuals considering investing in or constructing a factory in the U.S. would benefit from Trump’s tax policies, which allow for a full 100% immediate write-off of the factory’s cost, retroactively effective from January 20, 2025. Similarly, foreign automobile companies already established in the U.S. can upgrade factories with new machinery and equipment, availing themselves of a 100% bonus depreciation to write off the investment in the first year, also retroactively applicable.
Additionally, companies relocating operations from offshore to the U.S. under the “Made in America” initiative will benefit from a 15% corporate tax rate, one of the lowest globally. This forms another strategic advantage.
President Trump is significantly reducing regulatory compliance costs, proposing that for every new regulation enacted, ten existing ones would be eliminated. Trump has issued 107 executive orders in merely 67 days—more than any previous president in that timeframe—many of which target economic deregulation. These orders cover areas such as environmental policies, power plants, fossil fuels, banking, the SEC, and construction.
In high-tariff nations, especially China and several Asian countries, governments often adopt authoritarian approaches. The European Union is also referenced in this context. Conversely, the Trump Administration aims to enhance business freedom in the U.S. by eliminating various economic and cultural regulations that have long hindered businesses, creating a conducive environment for growth.
Under President Trump’s economic strategy, the U.S. is set to become a significant growth engine. Notably, Trump asserts that approximately $4 trillion of new foreign investments have already been attracted to the U.S. within a few months post-implementation of these policies. This direction underscores a dedication to free-market capitalism.
Furthermore, domestic production in America offers the advantage of avoiding concerns about tariffs.