Newsweek – President Donald Trump‘s lavish reception in Saudi Arabia earlier this week had a well-deserved celebratory air. “We are rocking,” Trump said to an audience of Saudi dignitaries and high-level American corporate leaders who accompanied him. “The United States is the hottest country, with the exception of your country,” he added in a flourish to his hosts in Riyadh.
By the end of the day, Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto head of state, pledged $600 billion in joint economic projects, including tens of billions in direct investment in the United States, $142 billion in military sales contracts, and private contracts with American firms in construction, infrastructure, and other areas. Trump hinted that he was hoping for a cool trillion, but a projected second round of talks in the coming months could bring investment that equals or exceeds that figure.
From Trump’s very first days back in office, other leading economies have pledged investment in the United States that already exceeds a trillion dollars, along with domestic companies that have pledged heavy investment at home, particularly in AI, microchips, and other strategically vital technologies. On Tuesday, Trump scored an additional $1.2 trillion “economic exchange” with Qatar. Whether the Saudi deal increases in value or not, it may also put Riyadh back on track to sign on to the Abraham Accords, Trump’s first-term brokering of peace deals between Israel and several Muslim countries. Saudi adherence, which Trump urged in a speech to Saudi leaders, would, along with his surprise overture to Syria’s new government, boost regional stability and trade and make a vital contribution to military and economic containment of Iran.
The vast Saudi welcome mat—actually an enormous royal purple carpet—is an indulgent coda to Trump’s score of recent economic successes. Despite doom-and-gloom predictions from Trump’s domestic critics, and even from some supporters, the “Liberation Day” tariffs announced on April 2—which resulted in a 10 percent base rate for all countries along with significant surcharges indexed to the U.S.’ trade deficits with most countries—quickly drew 130 foreign governments to plead for negotiations, with some offering zero-tariff relationships that will effectively allow U.S. products to dominate their markets. As was the case with Mexico, Canada, and briefly Colombia earlier in the year, the high Liberation Day tariffs are now postponed pending negotiations to score fairer deals for American products in foreign markets. Meanwhile, the U.S. Treasury collected some $16 billion in tariff revenue in April alone, about double the pre-Liberation Day figure.
The first truly big score came last week, when British Prime Minister Sir Keir Starmer traveled to Washington for a meeting to close a comprehensive general trade agreement—desired on both sides of the Atlantic but long elusive—that will ease U.S. access to the United Kingdom’s agricultural market for most products and remove some non-tariff hindrances to American trade. Signed at an effusive Oval Office ceremony on May 8—the 80th anniversary of Victory in Europe Day—this is a considerable improvement from agricultural tariffs that previously reached as high as 125 percent on American goods. The deal also streamlines customs procedures, secures preferred U.S. access to British military technology, and creates an alternate supply chain for pharmaceuticals previously sourced to China.
China was next. On May 12, following a short but nasty trade war and intense negotiations, Chinese representatives in Washington reached an agreement in principle to reset commercial relations, with tariffs dialed down from 145 percent to 30 percent for Chinese goods entering the United States and to a low 10 percent for U.S. goods entering China, down from 125 percent. According to Treasury Secretary Scott Bessent, further discussions could lead to greater Chinese purchases of U.S. goods, potentially reducing the U.S.’ sizeable trade deficit with China.
On these two deals alone, the New York Stock Exchange soared, nearly erasing worrisome losses incurred since early April and approaching the all-time highs the major indexes reached around the time of Trump’s reelection last November. Trump’s approval ratings also bounced, after shedding a few points in recent weeks. Inflation remains low, and consumer prices continue their first decline in three years. Deals remain to be done with many other countries, but if the momentum continues, America’s golden age may be at hand.