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Straits Times
2 days ago
- Business
- Straits Times
Trump's tariffs are likely to outlast him
US President Donald Trump at the White House on June 9. The writer says support for the liberal trading order founded after 1945 has evaporated. PHOTO: DOUG MILLS/NYTIMES Effective opposition to US President Donald Trump's trade policies has yet to pop its head above the parapet. Old-school pro-trade types are sidelined – consoling themselves, perhaps, that the protectionist turn will reverse once the costs are clearer. Be patient, we tell ourselves: This, too, shall pass. Will it? I don't doubt that the policies will fail. By itself, however, that won't restore the pre-Trump era. Join ST's Telegram channel and get the latest breaking news delivered to you.
Boston Globe
16-05-2025
- Business
- Boston Globe
Trump is taking credit for Middle East deals that predate his presidency
Advertisement When Trump was in Abu Dhabi on Thursday, the White House announced $200 billion in 'new' commercial deals with the UAE. Much of the corporate funding came from a cloud computing deal between Amazon and UAE state-owned telecommunications company e&, which the White House claimed would contribute $181 billion for the local economy by 2033. But Amazon had already announced that contract in October, and the company had only committed about $1 billion over six years. The $181 billion estimate came from an Amazon-sponsored study, and it was a broad calculation of how much the UAE could increase its gross domestic product if it started using more cloud services. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The math behind the White House's claim that Trump secured 'trillions' on this trip is fuzzy even including the contracts that predate his presidency. The sum of the deals is under $1 trillion, but the White House is also counting announcements it made months before the trip, including a vague plan that United Arab Emirates said would result in $1.4 trillion in investment in the United States over the next decade. The UAE and White House previously announced that deal in March. Advertisement President Trump at a business event in Abu Dhabi, the United Arab Emirates, on Friday, May 16, 2025. DOUG MILLS/NYT The White House did not explain why its announcements included deals that predate Trump's presidency. 'The Washington Post is trying and failing to discredit the trillions of dollars in good deals secured by President Trump on his Middle East trip,' White House spokeswoman Anna Kelly said. She added that the deals included 'reaffirmed investments' from companies that had agreements in the region before Trump's presidency, including McDermott and the technology company Parsons. McDermott International President and CEO Michael McKelvy said its partnerships in Qatar were developed over decades, and the company remains committed 'to support Qatar's energy development plans for decades to come.' Amazon did not comment, but on Friday the company announced a new offering to accelerate cloud adoption in the United Arab Emirates. It did not announce any additional funds beyond the $1 billion it announced last year. (Amazon founder Jeff Bezos owns The Washington Post.) Trump has been escalating pressure on leaders in the Middle East to up their investment in the United States, and his Gulf counterparts appear willing to partake in the optics of splashy spending as they seek to firm up their relationships with the president known for his penchant for pageantry. But economists, and people familiar with the coffers of the Saudi government particularly, question whether the countries can live up to these bold promises - even over the course of a decade. Advertisement 'It's sort of like the region's tying a big bow around itself,' said Karen Young, a senior fellow at the Middle East Institute. 'It's a big box but maybe it's a smaller present inside.' Officials in Saudi Arabia and the United Arab Emirates included deals that predated Trump's presidency in their announcements to inflate the investment figures, according to an official, who like others spoke on the condition of anonymity to detail private discussions. One businessman with close ties to Saudi Arabia described the creative math underway in Riyadh ahead of Trump's visit. The Saudi royal court contacted 'all the top businessmen' in the Gulf nation 'and they were asked, 'How much have you invested in the United States in the last two years? How much have you put in the United States in any kind of investment - real estate, stocks, bonds?' the businessman said, speaking on condition of anonymity so as not to jeopardize that relationship. The implication, he added, was that the Saudi government was seeking to assemble a set of numbers that could be included in the total investments announced during Trump's visit. Trump on Tuesday announced that the Saudi government would invest $600 billion in the United States, while still repeatedly teasing that the country should invest up to $1 trillion. But the deals that the White House announced in the country so far total less than $300 billion. Some of the projects in that tally were previously announced, including some of the plans to improve infrastructure like the King Salman International Airport. One of the U.S. companies, Jacobs, had announced it was selected for the airport project in August. Advertisement The Trump administration has also taken a broad view of what it counts as a foreign investment, including military purchases in its estimates. Two of the arms deals it announced appeared to predate the Trump administration. The Biden administration in 2022 notified Congress of its intention to sell Qatar a $1 billion 'Fixed Site - Low, Slow, Small Unmanned Aerial System Integrated Defeat System (FS-LIDS)' built by Raytheon to counter unmanned aircraft. On Wednesday, the White House announced that Raytheon had 'secured a $1 billion agreement for Qatar's acquisition' of that same system. A Raytheon spokeswoman did not immediately respond to a request for comment. The White House on Wednesday also announced a $2 billion General Atomics deal to sell drones to Qatar. But that sale has 'been in the works for years,' according to a congressional aide , and the notification was sent to Congress in March. The White House said another $38 billion represented 'potential investments' that were outlined in a 'statement of intent' with Qatar. 'A lot of it is going to be aspirational,' Hussein Ibish, a senior resident fellow at the Arab Gulf States Institute in Washington, said of the big numbers rolled out in Riyadh, Doha and Abu Dhabi. 'A lot of it is going to be promised and not delivered on.' Following the investments announced during the Trump visit, officials in the region acknowledged that Saudi Arabia doesn't have enough cash on hand to fund everything that was promised, said an individual with knowledge of the business community in Saudi Arabi. Some are questioning if it could even fund half. The kingdom's ability to come up with the cash could depend a lot on how quickly the investments are rolled out and if it decides to borrow money that would then be allocated for the U.S. investments, the person said. Saudi Arabia's budget has been strapped by stubbornly moderate oil prices and colossal domestic spending - tens of billions of dollars on ambitious projects like a desert megalopolis serviced by robots and a cube-shaped sky scraper. In some cases the kingdom has been forced to scale back elements of its larger projects. Advertisement 'There's a growing list of demands in terms of spending and investment relative to a shrinking pot of oil money that's going to be coming in this year,' said Tim Callen, a visiting fellow at the Arab Gulf States Institute. Trump has at times appeared to acknowledge the competing demands confronting the Saudi government. He said at a conference in February that he has told Saudi Arabia's leaders 'to put your country first.' 'Whether it's Saudi Arabia, whether it's something else, you're going to put your country first, but we're going to have plenty left over to help others also,' he said. 'As long as you invest in America, build in America, and hire in America, that means that I'm fighting for you.' Experts studying the Middle East said the White House's rhetoric on this trip echoed Trump's proclamations in 2017. Trump has claimed that during his first presidency, Saudi Arabia agreed to buy $450 billion in U.S. products. But sales on that scale did not materialize, according to an analysis that Callen conducted. During that trip, Trump compiled 'a list of real deals that he has struck, aspirational deals that may or may not have been struck, phony deals that won't be struck, and deals struck by his Democratic predecessor that will be credited to himself. And he comes up with a gigantic number close to a trillion,' Ibish said. Advertisement But this time, he's doing it 'three different times.'
Straits Times
28-04-2025
- Business
- Straits Times
Trump and the art of ‘dealism'
In US President Donald Trump's mode of thinking, the means — which can be as outlandish or unrealistic as he likes — are justified by the ends, which are always the same: winning. PHOTO: DOUG MILLS/NYTIMES 'I never get too attached to one deal or one approach' – words attributed to a certain Donald J. Trump in 1987. 'For starters, I keep a lot of balls in the air, because most deals fall out, no matter how promising they seem at first.' You might think it pointless to try to come up with answers to what exactly is going on in the mind of the US President by referring to a book ghostwritten for him some 38 years ago. And yet, perusing through The Art Of The Deal – as many people, friend and foe appear to have been doing of late – is the closest you can get to making sense of Mr Trump's mindset. Join ST's Telegram channel and get the latest breaking news delivered to you.
