The loud whispering of a recession-or even despite a possible recession-and now, despite President Donald Trump-despite the tariff tantrums, the US is growing up in a major region, which is not being talked about: to attract capital. $ 1.7 trillion in foreign and domestic investment commitments made in less than three months underlines long -term trust in the world’s largest economy.
When companies like Apple and TSMC, and countries such as Saudi Arabia bet on the American economy, they do not whisper it: they do so because they see long -term profitability.
Trump’s pagilist-like tariff jabs can earn them more opponents, as they bargained it to bargain, but they are demonstrating their habit for countries and corporations explaining countries and corporations to make big investments in the American economy to maintain their economic lead. Between doom and sadness about a potential American recession, no one can ignore his market’s shelter gravity – and in fact, the President’s individual bridge.
For Trump, this heavy investment of investment should be seen as a strategic counter for the possibility of recession. Infrastructure projects, high-tech manufacturing and AI development can serve as a buffer against the medium to long term economic disturbance. If these investments are physical according to the promise, they can stabilize development and strengthen the position of America as the world’s major innovation center.
Arab-dollar promises
Between 20 January – When Donald Trump sworn in for the second time – and in late March, three major investment commitments were standing out:
- Saudi Arabia invested a large -scale $ 600 billion in the US over the next four years, with Trump indicating that it could push the figure to $ 1 trillion. He called Saudi Crown Prince Mohammed bin Salman a “magnificent man”, who can only be obliged. Typically, the announcement by Saudi remained unclear at the details.
- Apple has earned $ 500 billion in four years, aimed at generating 20,000 jobs and setting up a new factory in Houston to produce AI-powered server infrastructure.
- Trio of Openi, Oracle and Softbank has promised $ 500 billion for a project, which has been dubbed Stargate, designed for AI Infrastructure of Supercharged America. To emphasize: The aim of half trillion dollars in investment is to put the US ahead in the AI ​​dominance race on China and others.
Then others, very small, but important investment commitments are:
- The Taiwan Semiconductor Manufacturing Company (TSMC) is pledging $ 100 billion in the US. Trump himself announced the news at the White House with the CEO of TSMC, which is a major step in the US attempt to recreate dominance in semector production. This new commitment leads to the TSMC’s total US investment to $ 165 billion by adding to $ 65 billion for manufacturing facilities in Arizona.
- Ellie Lily is investing $ 27 billion to create four new pharmaceutical manufacturing plants, which is expected to generate 3,000 high-skilled jobs and appoint 10,000 construction workers.
- Hyundai Motor Group has announced a plan to invest $ 21 billion to run manufacturing development between 2025 and 2028 in the US.
Smart focus
To encourage Trump to encourage investment -especially in important areas such as semiconductors and AI -align with its widespread geophysical strategy. For example, by encouraging the expansion of TSMC in the US, their administration is not only gaining access to the advanced chip technology of America – a significant component in everything from smartphones to fighter jets – but also China in Gulf.
The purpose of Trump’s “US First Investment Policy” memorandum released on 21 February is to streamline investment from colleagues by tightening the nose on China. While the White House is not implementing immediate rules, it is directing agencies to craft the rules that reduce inbound investment from favorable nations, while making our money hard for our money for opponents like China – continuity of administration’s widespread strategy from Beijing.
Promises, just promises?
But beyond publicity and Hupala, the real question remains: how physical this investment will really be? Will TSMC chips roll the Texas assembly lines on a scale ever promised? Will Apple actually put half a trillion dollar in the US economy, or is it another PR stunt with creative accounting? And will Saudi follow through this time, or will their Arabs once again remain a mirage?
Actually, we have seen this playbook first during President Trump’s first administration when foreign investment pledge made headlines. Some may still miss the promise of $ 350 billion Saudi investment. From its account of the US government, only one part of it has actually become physical. In recent years, FDI in the US has seen more dips than peaks.
Take care
And then, we do not forget the latest spanner in work. While Trump claims about foreign investment, the Federal Reserve is busy reminding everyone that inflation is still lean, interest rates are high and the cost of borrowing is not suited to investor at all. Meanwhile, the US dollar recently faced the worst stretch since November 2022, declining by 3.4%. Add Germany plans for large -scale expenses on defense and infrastructure – to make an economic boost in Europe, while Washington Ukraine on the Ukraine assistance Washington DiThers – and the global investment landscape looks slightly less approximate.
Trump 2.0 was considered a grand revival of the “USA First”, to act as a magic wand with business tariffs to act American manufacturing, safety of jobs and to fill government coffeers. Instead, markets and investors have been left irritable. Trump himself is not believing at all, not at least all the time. A few weeks ago, he also indicated in an emerging recession, branding it “duration of transition”. Treasury Secretary Scott Besant is already preparing for the public for economic unrest, it is called “detox period”.
smoke and mirrors?
The reality is that investor – no matter how much they can like Tram’s tax deduction and deregulation – the most uncertainty. And anything about Trump 2.0 suggests a stable, approximate business atmosphere. Business policies are in flow, tariffs may grow overnight, and global ally are less inclined to play with the demands of Washington. The market lives on the edge, equally for whatever comes forward with businesses and economists.
So, will these investment vows turn into economic gold, or are we looking at another round of smoke and mirror?
Only time will tell, as clouped. However, this time, Trump appears more organized, more prepared and even more aggressive. He seems less keen to bear the delay. The mantra of “Economic Nationalism” is back with a vengeance. He wants to do onshore manufacturing. They have slapped tariffs on imports. And some people may say that they have harassed weak colleagues in economic deals “America first”. Many people are ready to bet that this strong approach can actually distribute. At least Trump believes it will happen.
(Syed Zubair Ahmed is a London -based senior Indian journalist who has three decades experience with Western media)
Disclaimer: These are the personal opinions of the author
