Trump’s First Call With a Foreign Leader Was a Complete Joke
Saudi Crown Prince Mohammed bin Salman definitely just played Trump.
Donald Trump’s first phone call with a foreign leader on Wednesday was with Saudi Crown Prince Mohammed bin Salman, who made a hefty and incredibly unlikely pledge of investment.
MBS told Trump on the call that the country hopes to expand trade and investments with the United States by $600 billion, reports Bloomberg, citing Saudi state media. MBS reportedly said that his country was eager to take advantage of investment opportunities the Trump administration is creating, saying that they could result in “unprecedented economic prosperity.”
But MBS’s investment pledge is a stratospheric amount, representing close to 55 percent of Saudi Arabia’s gross domestic product, and the country is currently posting fiscal deficits, due to its multiyear Vision 2030 plan, which seeks to diversify the country’s economy. Plus, the oil-rich nation has been hurt by falling oil prices.
Journalist Gregg Carlstrom pointed out that $600 billion over four years is more than what Saudi Arabia’s Public Investment Fund has invested in the entire world to date. Not so coincidentally, Trump on Monday floated the idea of making Saudi Arabia his foreign visit as president this term, but only if the country was willing to buy $450 to $500 billion of American products. Trump made Saudi Arabia his first foreign visit in 2017 as well, reportedly also after an investment pledge from MBS at the time.
MBS’s $600 billion pledge was almost certainly tabulated to please the new president and entice him into visiting. It’s another example of how Trump is making policy transactional. When it comes to Saudi Arabia, Trump’s business operation has already cut a deal to build a Trump Tower in Jeddah, and unlike in his first term, the Trump Organization will not be shying away from business deals with foreign companies this time around. It looks like Trump’s business relationship with Saudi Arabia is already overlapping with the new foreign policy of his presidency.