Global firms should 'make products in US' or face tariffs: Trump

International companies should manufacture products within the United States or face tariffs, US President Donald Trump warned a well-connected global crowd.

Speaking remotely to the annual World Economic Forum in Davos, Switzerland on Thursday, Trump proposed an economic strategy combining incentives and penalties.

He proposed cutting corporate tax rates from 21% to 15% in the US to attract more investment, a proposal his critics have called a giveaway to the rich.

Trump warned that companies choosing to produce goods outside the US would face significant export tariffs. He framed the proposal as an opportunity for businesses, saying they could benefit from "among the lowest taxes of any nation on Earth" by complying with his administration's manufacturing recommendations.

Non-compliance would result in tariffs that could generate substantial revenue for the US Treasury, he said.

Trump has been threatening other countries, including Canada, China, and Mexico, with high tariff rates, raising fears of a trade war.

During his inauguration, he said he would review the US trade system and implement tariffs on foreign countries to "enrich" Americans.

Most economists say that it is consumers who end up paying for the tariffs via higher retail prices.