Trump hits out at Goldman Sachs CEO over tariff research

US President Donald Trump has launched a fresh attack on Wall Street, this time targeting Goldman Sachs CEO David Solomon over the bank’s assessment of his tariff policies. In a post on his Truth Social account, quoted by Reuters, Trump claimed that tariffs have been a boon for the US economy, insisting they have brought in “trillions of dollars” without stoking inflation. He accused Solomon and his team of making “a bad prediction” on the economic effects of tariffs, and suggested the Goldman chief “focus on being a DJ” rather than running a major financial institution.

The trigger: Goldman’s tariff analysis

While Trump did not specify which research note he was referring to, Reuters reports that Goldman Sachs has consistently taken a bearish view on tariffs. In its latest note, chief economist Jan Hatzius said US consumers had absorbed 22 per cent of tariff costs through June, a figure that could rise to 67 per cent if recent levies continue on their current trajectory.

Goldman has also warned that sweeping tariffs could weigh on global growth and push the US Federal Reserve to cut interest rates more aggressively than expected. Hatziusdeclined to comment when contacted by Reuters, and a Goldman Sachs spokesperson also offered no response to Trump’s remarks.

Trump responds

In his Truth Social post, Trump doubled down on his argument that the burden of tariffs falls largely on foreign companies and governments rather than US consumers.

“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,” Trump wrote.

Since February 1, when Trump intensified his trade war by imposing levies on imports from Mexico, Canada, and China, at least 333 companies worldwide have reacted to tariffs in some way, according to a Reuters tracker.

Tariffs: Economic weapon or consumer cost?

Tariffs are taxes on imported goods, usually intended to protect domestic industries or influence trade terms. Their cost distribution depends on global supply chains, market demand, and pricing strategies.

According to Reuters’ global tariff tracker, companies 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.

Economists remain divided:

• Trump’s view:Tariffs are filling US Treasury coffers, strengthening the stock market, and not causing inflation.
• Goldman and others: The costs are being shared by businesses and consumers, and sustained tariffs could slow growth.

Broader corporate tension over tariffs

Trump’s criticism of Goldman Sachs comes amid a broader pattern of presidential rebukes aimed at corporate leaders. He has previously criticised:

• JPMorgan Chase and Bank of America over alleged “debanking” of individuals.
• Intel CEO Lip Bu-Tan over ties to Chinese firms.
• Apple’s Tim Cook for manufacturing iPhones outside the US
• Amazon for considering listing prices that reflect tariff costs (an idea the company later abandoned).
• A senior JPMorgan Asset Management strategist told Reuters earlier this year that he had toned down his public comments on tariffs due to concerns about internal and external repercussions.

US economics backdrop

The clash comes as new data shows US consumer prices rose moderately in July. According to Reuters, costs for services such as airline fares and tariff-sensitive goods like household furniture pushed a measure of underlying inflation to its largest six-month gain.

Despite the uptick, markets expect the Federal Reserve to cut interest rates in September amid weakening labour market conditions. But economists warn that the inflationary effects of Trump’s tariffs may still be working through the system, especially as firms sell off pre-tariff inventory.

Political turmoil

Reuters also notes that concerns about data quality are rising after staffing cuts and the suspension of data collection for parts of the Consumer Price Index in some areas. These concerns intensified following the firing of BLS chief Erika McEntarfer earlier this month after weak job growth data in July.

Trump has nominated E.J. Antoni, a Heritage Foundation economist and critic of the BLS, to lead the statistics agency. Antoni previously contributed to “Project 2025,” a conservative plan to overhaul the US federal government.

(With inputs from the agencies)