Key Facts
• Goldman Sachs economist predicted tariff costs would shift to consumers soon.
• Days later, Trump urged CEO David Solomon to hire a new economist.
• Trump claimed tariffs did not cause inflation and benefited the U.S. Treasury.
• He suggested Solomon focus on DJing or step back from financial leadership.
• Goldman Sachs’ report estimated consumers absorbed 22% of tariff costs in June.
• The report projected this figure could rise to 67% by October.
• Chief Economist Jan Hatzius accurately predicted no U.S. recession in 2023.
• July’s Consumer Price Index showed a 0.2% rise, with annual inflation at 2.7%.
• Goldman Sachs declined to comment on Trump’s statements.
• Hatzius’ team warned of potential price shocks from tariffs, aligning with other firms.
Summary
Former President Donald Trump criticized Goldman Sachs’ tariff cost analysis, urging CEO David Solomon to hire a new economist. Trump dismissed claims that tariffs caused inflation, highlighting their financial benefits to the U.S. Treasury. Goldman Sachs’ report estimated consumers absorbed 22% of tariff costs in June, potentially rising to 67% by October. Chief Economist Jan Hatzius, known for his accurate 2023 economic predictions, warned of price shocks from tariffs. Despite Trump’s remarks, Goldman Sachs refrained from commenting. The July Consumer Price Index showed a 0.2% increase, maintaining annual inflation at 2.7%.
