FedEx founder and executive chairman Fred Smith expressed concerns regarding the economic impact of current trade policies under President Donald Trump. Speaking at the American Dream Initiative Solutions Summit in Memphis, Smith highlighted that the economy might continue to face difficulties until trade agreements improve. He emphasized the need for policy adaptation by businesses like FedEx in response to federal tariff strategies.
During the summit, Smith participated in a panel discussion titled “Investing in Memphis” alongside Tennessee House Speaker Cameron Sexton. The panel, moderated by the American Enterprise Institute President Robert Doar, focused on various topics, including tariffs, artificial intelligence, and regional economic strategies.
Smith noted that historical tariffs in the early 20th century significantly disrupted international trade and contributed to historical tensions, eventually leading to critical legislation like the Reciprocal Trade Agreements Act of 1934. He pointed out that this act historically guided international trade until President Trump’s administration.
In terms of local economic growth, both Smith and Sexton discussed key areas of focus for Memphis. Smith underlined the importance of enhancing security, education, public transportation, and grid power to drive the city’s success. He stressed that robust infrastructure would support industries like tourism and entertainment, which are vital to the region’s economy.
Additionally, Smith praised initiatives by the Greater Memphis Chamber and the City of Memphis that attracted interest from Elon Musk’s artificial intelligence company, xAI, highlighting that the city’s ability to meet power demands was a decisive factor.
The summit also addressed housing needs, as American Enterprise Institute senior fellow Edward Pinto presented data indicating a demand for diverse housing options to accommodate a growing workforce. Increasing the availability of affordable, smaller homes was identified as a crucial step to counter population migration challenges.
Joann Massey, President and CEO of the Economic Development Growth Engine for Memphis and Shelby County, emphasized the potential and momentum of Memphis, asserting that strategic investments aligning with a shared vision can catalyze substantial regional progress.
