‘Trump Effect’ website takes credit for U.S. investments made under Biden
The Trump administration’s new “Trump Effect” website is touting billions in domestic investments as a result of President Donald Trump’s return to office, but nearly half of the highlighted projects were actually launched under President Joe Biden or are routine capital expenditures, a Reuters review found.
Upon taking office in January, Trump claimed his policies had immediately attracted $3 trillion in investments to the U.S., a number he now says has reached $14 trillion, about half of the nation’s annual GDP, News.Az reports, citing Reuters.
His administration has created a public list of over 70 business projects, ranging from bakeries in Texas to microchip plants in Arizona, as supposed proof of this claim.
However, as of July 2, the list accounted for only $2.6 trillion in confirmed investments. Reuters found that roughly $1.3 trillion of that total either originated under the Biden administration or represents standard business spending, not new investment sparked by Trump policies.
Many companies, including major firms like Hyundai, Corning, and LEGO, had begun discussions or secured state incentives well before Trump’s January inauguration. Some benefited directly from legislation signed by Biden, such as the CHIPS Act, which provides federal support for domestic semiconductor production.
For example, Corning’s $1.5 billion Michigan project includes $900 million announced in early 2024 and relies on tax incentives passed under Biden. Hyundai picked a Louisiana site for its $5.8 billion plant a month before Trump took office, while LEGO began working with Virginia on a $366 million site three years earlier.
Asked about taking credit for these initiatives, White House spokesman Kush Desai said, “President Trump is the greatest closer in modern history,” adding that his leadership helps convert hypothetical plans into firm investments.
But economists dispute the claims. “Despite all the announcements, it hasn’t translated into any change in expectations,” said Mark Zandi of Moody’s Analytics. “If anything, the fundamentals that drive investment appear weaker.”
Trump’s website includes projects that were heavily shaped by local or state incentives. Diageo’s $415 million plant in Alabama, for instance, was supported by tax deals from 2022. Similarly, investments from Eaton, Saint-Gobain, and Paris Baguette were also backed by local programs before Trump’s presidency.
The list also includes typical business expenditures, such as Apple’s announcement in February to invest $500 billion and hire 20,000 workers. Analysts say Apple’s pledge aligns with its historical spending patterns and cannot be linked directly to Trump. Apple had made similar commitments under both the Biden and previous Trump administrations.
The largest item on the Trump Effect list is a $500 billion pledge from OpenAI, SoftBank, and Oracle to build AI data centers. The companies, which met with Trump in January, say they plan to spend $100 billion “immediately,” but are still negotiating with states over project locations.
SoftBank and OpenAI confirmed their commitment but did not directly credit Trump. Oracle declined to comment.
Trump is not the first president to promote economic wins as proof of leadership. But his image as a “deal-maker” makes the accuracy of his investment claims more politically charged.
In the pharmaceutical industry, companies like Eli Lilly have packaged previous spending increases as new Trump-era investment. CEO David Ricks’ $27 billion announcement earlier this year was only slightly higher than the $23 billion spent since 2020.
“Everyone saw that Donald Trump gave David Ricks blessings every time he spoke,” said James Shin of Deutsche Bank. “Lilly was quite shrewd in its timing.”
Despite the administration’s messaging, the White House has not provided a breakdown of the full $14 trillion it claims has been secured since Trump’s return. The website only represents a partial list and does not include foreign investment deals made during Trump’s May tour of the Middle East.
As Trump ramps up rhetoric about an economic resurgence, many of the investments he’s promoting appear to have deeper roots, planted well before his second inauguration.
Similar news
