{"text":[[{"start":14.66,"text":"Companies have pledged to invest at least $1.9tn in the US since the start of Donald Trump’s presidency but the spending bonanza could be threatened by a spiralling tariff war. "}],[{"start":27.58,"text":"Investment pledges from overseas and US companies have reached $1.9tn, according to an analysis by the Financial Times. "},{"start":37.009,"text":"This compares with $910bn of private manufacturing investments announced from the start of Joe Biden’s presidency until October 2024, according to the US commerce department. "}],[{"start":50.48,"text":"The latest commitments include $100bn each from SoftBank, which made the commitment in December, and chip manufacturer TSMC, $20bn from French shipping group CMA CGM, a $500bn pledge by Apple and $5bn from carmaker Stellantis. "}],[{"start":70.78999999999999,"text":"However, many of the promises are from businesses with global supply chains that are vulnerable to the sweeping tariffs Trump has announced against trading partners including China, India and the EU. "}],[{"start":83.89999999999999,"text":"Teresa Fort, associate professor and international trade expert at Dartmouth College, said the damage from Trump’s tariffs would go far beyond the $1.9tn investment pledges already made: “The amount of uncertainty that he has introduced to the world trading system means that nobody is in a position to make long-term investments. "},{"start":105.35399999999998,"text":"It is definitely going to make the US a less attractive place to invest in. ”"}],[{"start":110.46,"text":"Trump said in late March that money was “pouring in” because of his trade policies. "},{"start":115.42699999999999,"text":"But after he unveiled a 20 per cent tariff on EU imports, French President Emmanuel Macron urged companies to pause US investment as his government works with the European Commission on the EU’s response. "}],[{"start":129.4,"text":"“What message would we send by having major European players investing billions of euros in the American economy at a time when [the US] are hitting us? ”"},{"start":139.579,"text":"Macron said, calling on industries to also refrain from trying to negotiate exemptions with Washington. "}],[{"start":146.67000000000002,"text":"Japan’s foreign ministry said on Monday that Prime Minister Shigeru Ishiba “expressed strong concerns that the tariffs measures by the US could weaken investment capacity among Japanese companies” on a phone call with Trump. "},{"start":160.21200000000002,"text":"Japan is the top source of foreign investment in the US. "}],[{"start":null,"text":"
"}],[{"start":164.87,"text":"Some analysts argue that Trump’s protectionist policies could accelerate investment in US production as countries try to win concessions. "},{"start":173.599,"text":"Earlier this year the Capgemini Research Institute estimated that US companies were expected to spend $1.1tn on reshoring manufacturing to the US over the next three years, up from $750bn predicted in 2024. "}],[{"start":190.82,"text":"But Scott Lincicome, vice-president of the free-market Cato Institute think-tank, said a decline in corporate earnings, higher production costs and a slowdown in the US economy as a result of the tariffs could dent investment appetite. "}],[{"start":206.67,"text":"“Whoever had the plan to use these [investment] announcements to get the tariffs to go away or slow down has proven to be pretty wrong-headed,” Lincicome said. "},{"start":216.712,"text":"“It’s impossible to look at the tariffs that were announced as some sort of systematic plan to induce long-term investment. ”"}],[{"start":224.36999999999998,"text":"Stellantis, which makes Jeep and Ram trucks, has already said it would furlough 900 workers at five plants in the US and temporarily shut down production in Canada and Mexico as a result of the tariff uncertainty. "}],[{"start":239.32999999999998,"text":"Experts noted the difficulty in determining how much of the pledged amounts were new, as well as predicting how much of it would happen. "},{"start":247.35899999999998,"text":"Promises made during Trump’s first presidential term included some investments that were already planned, while it is unclear how many of those made during Biden’s presidency materialised. "}],[{"start":259.52,"text":"“These investment announcements, coming in January or February, cannot be the result of the new incoming administration,” said one US academic focused on management, noting that financial planning happened over longer timescales. "}],[{"start":274,"text":"Apple announced $500bn of investment in February but lost more than $300bn in market value after Trump unveiled his tariffs, which will hit its supply and production hubs in Asia. "},{"start":287.504,"text":"Apple already invests substantially in the US, so it is unclear how much can be attributed to Trump. "}],[{"start":295.27,"text":"South Korea’s Hyundai promised it would spend $21bn over three years to expand its US car production and steel business and create 100,000 jobs. "},{"start":306.68699999999995,"text":"Despite that, foreign-made cars sold in the US now face a 25 per cent tariff. "}],[{"start":313.60999999999996,"text":"Trump also announced an additional 25 per cent tariff on all South Korean imports. "}],[{"start":319.90999999999997,"text":"SoftBank, led by CEO Masayoshi Son, said it had exceeded a $50bn pledge made after Trump’s first win in 2016, creating more than 50,000 jobs, although it did lay people off during the pandemic. "}],[{"start":335.9,"text":"Kirk Boodry, analyst at Astris Advisory, said SoftBank could be forced to sell assets if the tariffs caused a prolonged market downturn — as it did in 2020 during the pandemic. "}],[{"start":348.13,"text":""}]],"url":"https://d33mkcasurz97s.cloudfront.net/album/200670-1744094104.mp3"}