FDD’s Juan Zarate Discusses Role of Trump’s America First Policy in Attracting New Investments

After hitting pause on the implementation of tariffs on all countries, except China, the White House now has a “golden opportunity” to negotiate new trade and investment deals with friendly nations, isolate adversaries and bring manufacturing back to the United States, according to Juan Zarate, chairman of the Center on Economic and Financial Power at the Foundation for Defense of Democracies and a two-time Wash100 Award winner. In an article for the Foreign Policy Magazine, Zarate and co-author Elaine Dezenski, also from the Center on Economic and Financial Power, said the key to achieving the economic goals is in the effective implementation of President Donald Trump’s America First Investment Policy, or AFIP. 

What Is AFIP?

Unveiled in February, AFIP is the White House’s plan to promote and fast-track greater investment in the U.S. by friendly and partner countries. The article notes that AFIP would expedite environmental reviews and open investment opportunities using the sovereign wealth funds of foreign nations. 

Redefining Allies

The AFIP emphasizes strengthening partnerships with allies, which may seem incongruous when the administration is also imposing tariffs on key trading partners such as Canada, Japan, Mexico and the European Union, the article noted. However, President Trump may be looking at economic allies with similar views on priorities such as trade imbalances, migration, drug cartels and China. 

The AFIP, according to Zarate and Dezenski, could redefine what it means to be an “ally,” potentially going beyond security and including economic partnerships. Some future economic allies of the United States are Singapore, Israel, Argentina, the Netherlands, Saudi Arabia and South Korea. 

Early Investments in the US

Although the introduction and temporary suspension of tariffs have led to market volatility, the article notes that the U.S. is starting to see new investments. 

The administration recently reopened the acquisition of U.S. Steel by Japan’s Nippon Steel, a deal that was halted under President Joe Biden.

Saudi Arabia also expressed interest in investing millions of dollars in the U.S. defense industrial base over the next four years.