U.S. President Donald Trump criticized Goldman Sachs and its chief economist following the bank's report questioning the impact of his tariff policies on American consumers.
Trump's Accusations Against Goldman Sachs
In a post on Truth Social, Trump urged Goldman Sachs CEO David Solomon to replace the chief economist or 'just focus on being a DJ.' This statement was made in response to a Goldman Sachs report indicating that American consumers would soon bear the brunt of tariffs imposed by Trump. Trump accused the bank of not giving due credit for the positive outcomes stemming from his tariffs.
Economic Impact of Tariffs
According to federal data, tariff revenues reached nearly $28 billion in July 2023. Trump claims that tariffs have not caused inflation, but instead brought in 'massive' revenues to the Treasury. However, Goldman’s report suggests that the share of costs borne by American consumers could rise to 67% by October if the current trends continue.
Legal Challenges to Trump's Tariff Policy
Trump also warned U.S. courts against blocking his tariff measures, stating that doing so could lead to a 'severe economic downturn.' He highlighted that overturning the tariffs could have catastrophic economic consequences, comparing it to the Great Depression of 1929. The legality of the tariffs is currently under review in an appellate court, and former House Speaker Paul Ryan mentioned that the Supreme Court could potentially invalidate the tariffs altogether.
The escalating conflict between Trump and Goldman Sachs highlights the growing divide between administrative claims about the impacts of tariffs and market experts' projections. Changes in tariff policy could significantly affect the economic landscape of the country.
