Trump lashes out at Goldman Sachs over tariff analysis

President Donald Trump lashed out at Goldman Sachs after the bank’s leading economists released a report warning that American consumers will soon bear the brunt of higher tariffs. In a recent Truth Social post, Trump accused the bank and its CEO, David Solomon, of refusing to acknowledge the benefits of his tariff policies and suggested Solomon should replace his top economist.

Trump’s statement

“Trillions of dollars are being taken in on tariffs, which has been incredible for our country, its stock market, its general wealth and just about everything else. It has been proven, that even at this late stage, tariffs have not caused inflation or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers,” Trump shared to his 10 million followers. “Also, it has been shown that, for the most part, consumers aren’t even paying these tariffs; it is mostly companies and governments, many of them foreign, picking up the tabs. … They made a bad prediction a long time ago on both the market repercussions and the tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new economist or, maybe, he ought to just focus on being a DJ, and not bother running a major financial institution.”

Goldman Sachs’ board

Trump’s jab referenced Solomon’s past career as a DJ at high-profile events, a side gig the CEO abandoned two years ago under pressure from Goldman Sachs’ board. The spat follows a Goldman Sachs report that estimated Americans had “absorbed 22% of tariff costs through June,” with that figure projected to rise sharply to 67% by October if tariffs continue on their current path. While Trump did not specifically mention the report, the post appeared aimed at its findings.

The study

Goldman Sachs’ chief economist, Jan Hatzius, led the team behind the study. Hatzius is among the most influential economists in both Washington and Wall Street circles, known for meetings with figures including former President Joe Biden and Federal Reserve Chair Jerome Powell. He was also one of the few economists in 2023 to accurately predict the U.S. economy would avoid recession.

Trump vs. Goldman Sachs

Hatzius’ tariff outlook aligns with other major financial institutions that have cautioned consumers will eventually feel tariff-related price pressures. So far, however, price data has shown limited impact. The latest Consumer Price Index reported a 0.2% increase in July, keeping the annual inflation rate at 2.7%.

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