The America First investment pledges: How are they structured and are they realistic?

In pursuit of President Donald J. Trump's "America First" agenda, the administration has pressured allies and partners to invest in US industrial and infrastructure projects. The White House has announced commitments by the European Union, Japan, South Korea, Taiwan, several Gulf Cooperation Council countries, and others, to import specific amounts of goods and services from the United States and to make sizable investments on US soil. These agreements resulted from a more coercive US foreign policy than in the past. Because the administration is helping select the targets of foreign investment, it is embarking on a major expansion of US industrial policy—one paid for by allied countries. This Policy Brief shows that much about investment pledges, worth more than $5 trillion, remains unclear or aspirational. 

Key Takeaways 

• The "America First" investment agenda includes shipbuilding, technology, energy, and supply chains, but greater public oversight is needed to guard against inefficiencies, political bias, and corruption.
• Additional uncertainty looms should the US Supreme Court invalidate the administration's tariffs, which officials had wielded as a threat to extract the investment pledges.
• The investment deals could yield more growth and employment in the United States, but some partner countries lack sufficient financial resources to meet their commitments.