Trump criticises Goldman Sachs CEO over tariff impact research

The Sun

4 days ago

U.S. President Donald Trump hit out at Goldman Sachs CEO David Solomon on Tuesday, saying the bank had been wrong to predict tariffs would hurt the economy and questioning whether Solomon should lead the Wall Street institution.
In a post on Truth Social, Trump said it was mostly foreign companies and governments absorbing the cost of his tariffs.
'But David Solomon and Goldman Sachs refuse to give credit where credit is due. They made a bad prediction...on both the Market repercussion and the Tariffs themselves.'
Trump said Solomon should maybe focus on being a DJ, a hobby Solomon abandoned some time ago, 'and not bother running a major Financial Institution.'
The bank CEO is the latest corporate boss to become the target of Trump's ire.
A Goldman Sachs spokesperson declined to comment. A spokesperson for the White House did not immediately respond to a request for comment.
Since February 1, when Trump kicked off trade wars by slapping levies on imports from Mexico, Canada and China, at least 333 companies worldwide have reacted to the tariffs in some manner, as of August 12, according to a Reuters tracker.
While Trump did not specify which Goldman research he was referring to, the Wall Street bank - like many of its peers - has taken a bearish stance on Trump's tariffs.
In a note published on Sunday, Goldman Sachs analysts, led by chief economist Jan Hatzius, said U.S. consumers had absorbed 22% of tariff costs through June and that figure could rise to 67% if recent tariffs continue on the same trajectory.
'I think that David should go out and get himself a new economist,' Trump wrote. Hatzius declined to comment.
In April, Goldman also warned sweeping U.S. tariffs would weigh on global growth and prompt the Federal Reserve to cut interest rates more aggressively than previously expected.
Last week, the president demanded Intel CEO Lip Bu-Tan resign due to his ties to Chinese firms, and has repeatedly targeted Apple boss Tim Cook for making U.S.-sold iPhones outside the country.
Trump has also taken aim at other Wall Street banks, alleging, without providing evidence, that JPMorgan Chase and Bank of America discriminated against him by refusing his deposits after his first term.
Tariffs are taxes levied on imported goods to typically protect domestic industries or influence trade policies. Their cost can be distributed among manufacturers, retailers and consumers, depending on market conditions and supply-chain dynamics.
As the second quarter earnings season progresses, companies have reported a combined financial hit of $13.6 billion to $15.2 billion between July 16 and August 8 for the full year from Trump's tariffs, according to Reuters' global tariff tracker. - Reuters