US Treasury Secretary Scott Bessent discusses President Donald Trumps trade agreements, Tarliefadlines and the Boom in Capex spending on mornings with Maria.
President Donald Trump’s Signature of tax cuts and expenditure package drives what the administration calls a “Capex comeback”, since companies use facilities in the new law to invest in areas that will stimulate productivity growth in the future.
Trump, Finance Minister Scott Bessent and Republican legislators recorded a provision in the One Big Beautiful Bill Act (OBBBA) with which companies can be published in full Capital expenses (Capex) Vooruit and with retroactive effect until the start of Trump’s term in January.
President Trump and his administration praise the “Capex Comeback”, encouraged by OBBBA. (Al Drago / Bloomberg via Getty Images / Getty images)
On Tuesday, the Ministry of Finance advertised the impact of the Capex Act by companies, and noted that it increased by 16.6% in the first half of the year, while the production of business equipment in the second quarter increased by 11% after an increase of 23% in the first quarter.
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Lavorgna said that before the bill was signed, there was an “near-17% annual profit in the production of business equipment”, adding that the increase in investments in business equipment in the first half of the year is the “strongest non-plandemic profit since Q3-Q4 of 1997.”
He added that efforts to stimulate productivity as an “investment in the future” and be certainty tax policy Is “encouraging us to invest in America, and the rates are also part of it because they encourage more capital to come in.”
“It is not like a hand-out of the government, it is not an incentive that simply gives people money to use it. This is as creating jobs that create income, which then create the expenses, which in turn will create more jobs. It is really focused on stock,” Lavorgna said.
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The Trump government considers its tax policy aimed at stimulating investments as cooperation with the president’s rates. (Brian Cassella/Chicago Tribune/Tribune News Service via Getty Images/Getty images)
The Trump administration Has the policy of the account as working in consultation with its trade and rate policy, which it hopes will attract more companies to move production capacity to the US from abroad, while wage growth and the increased productivity are stimulated.
“The only big great account encourages the capital investment that will continue to stimulate the blue-collar tree that we already see,” said Lavorgna. “At the same time, the rate and trade policy have been designed to attract foreign capital that subsequently arrives, which will then further increase productivity and wages.”
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President Donald Trump signed the only Big Beautiful Bill Act in the law during an event in the White House on July 4, 2025. (Samuel Corum / Getty Images / Getty image)
The first was when the president announced the deal that Nippon Steel will see invest in US Steel and his facilities, as well as another event last week for one artificial intelligence (Ai) Top that will be powered by energy developed in the state.
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“You see it on both sides,” said Bessent. “Imagine that steel and ai. And you know, it’s a very diversified boom – we see companies want to come in from all over the world.”
