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Remarks are first to global leaders since inauguration

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He harshly criticizes allies Canada, European Union

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Oil prices turn negative

(Updates with Trump comments, oil prices drop, paragraphs 1-4)

By Echo Wang, Lananh Nguyen and Marwa Rashad

DAVOS, Switzerland, Jan 23 (Reuters) - U.S. President

Donald Trump told business leaders at the World Economic Forum

in Davos, Switzerland, that he wants to lower global oil prices,

interest rates and taxes, and warned they will face tariffs if

they make their products abroad.

"I'll demand that interest rates drop immediately. And

likewise, they should be dropping all over the world," Trump

said via video conference on Thursday.

"I'm also going to ask Saudi Arabia and OPEC to bring down

the cost of oil."

The remarks were the first of Trump's four-day-old

presidency to global business and political leaders at a time

when markets are on edge over his plans for broad tariffs on

imported goods.

Oil prices turned negative as Trump spoke, while the euro

dipped and the U.S. dollar swung between gains and losses

against a basket of foreign currencies.

Some of his harshest criticism was reserved for traditional

U.S. allies Canada and the European Union who he threatened

again with new tariffs, while berating their import policies

blaming them for the U.S.'s trade goods deficit with these

partners.

"One thing we're going to be demanding is we're going to be

demanding respect from other nations. Canada. We have a

tremendous deficit with Canada. We're not going to have that

anywhere," he said.

People cheered as Trump's face appeared on the big screen.

Trump, whose first elected office was the White House, listed

the rapid-fire changes he had made since his swearing-in on

Monday.

He also sharply criticizing his predecessor Joe Biden and

policies that have dominated at Davos for years, from climate

change policies to diversity. Former U.S. Secretary of State

John Kerry, who served under Biden, visibly winced as he

listened.

Trump promised to reduce inflation with a mix of tariffs,

deregulation and tax cuts along with his crackdown on illegal

immigration and commitment to making the United States a hub of

artificial intelligence, cryptocurrencies and fossil fuels. He

also criticized levels of taxation in the European Union.

"The United States has the largest amount of oil and gas of

any country on Earth, and we're going to use it," Trump said.

"Not only will this reduce the cost of virtually all goods and

services, it will make the United States a manufacturing

superpower."

The Davos forum gave a handful of business executives an

opportunity to publicly question the president on issues that

affect their businesses, or in some cases their specific

investments, projects and interests.

Trump repeated a string of familiar falsehoods - that the

U.S. had the cleanest air and water during his first term, that

he won by a large mandate in the United States, that there was a

"Green New Deal" in the U.S. that he had repealed.

The business leaders included Bank of America ( BAC ) CEO

Brian Moynihan and Blackstone Group CEO Stephen

Schwarzman as well as TotalEnergies CEO Patrick

Pouyanne, WEF CEO Borge Brende and WEF founder Klaus Schwab.

More than a thousand executives, officials and others from

around the world filled the main hall at the convention for

Trump's speech, including Polish President Andrzej Duda.

Business leaders are eager to hear more about Trump's

concrete plans on tariffs after he threatened broad import

duties and suggested they could start on Feb. 1.

Trump has moved quickly to crack down on immigration, expand

domestic energy production and has threatened to impose steep

tariffs on the European Union, China, Mexico and Canada.

Trump has also withdrawn the United States from the World

Health Organization and the Paris climate agreement. He says he

will rename the Gulf of Mexico as the Gulf of America, though

other countries may not adopt the new name. He has also

threatened to take back the Panama Canal from Panama.

He has pardoned more than 1,500 supporters who attacked the

U.S. Capitol on Jan. 6, 2021, in a failed effort to overturn his

2020 election loss, drawing outrage from lawmakers and police

whose lives were put at risk.

Trump is moving to dismantle diversity programs within the

U.S. government and is pressuring the private sector to do so as

well. That has left some in Davos searching for new words to

describe workplace practices that they say are essential to

their businesses.

(Additional reporting and writing by Andy Sullivan and Trevor

Hunnicutt; Editing by Michael Perry and Heather Timmons and

Howard Goller)