Trump reprimands Goldman Sachs CEO for tariff projections: "Concentrate on disc jockeying instead"
In a recent analysis, Goldman Sachs economists have shed light on the distribution of costs associated with President Trump's tariffs. The report, which does not mention any recent comments or actions by President Trump or Goldman Sachs CEO David Solomon, provides insights into how U.S. companies, consumers, and foreign exporters have been affected.
According to the report, U.S. companies have shouldered the largest share of the tariff costs, absorbing about 64% of the total tariff costs as of June 2025[2][3]. On the other hand, U.S. consumers had absorbed 22% of the total tariff costs by June. However, this share is projected to increase significantly, potentially reaching 67% by October 2025 if the historical pattern repeats[1][3][4].
Foreign exporters have absorbed a smaller portion of the tariff costs, about 14% as of June. This share is expected to rise modestly to 25% by October[1][3].
The report also estimates that the core Personal Consumption Expenditures (PCE) index has risen by 0.2% due to tariffs and will rise by another 0.16% in July[5]. The report predicts a further 0.5% increase in core PCE inflation from August to December, leaving year-over-year core PCE inflation at 3.2% in December[6]. This inflation rate, if persisting at those levels through the end of the year, could affect the outlook for multiple interest rate cuts.
President Trump, in response to the report, criticized Goldman Sachs CEO David Solomon for the findings, stating that "Trillions of Dollars are being taken in on Tariffs" and that they have not caused inflation or other problems for America[10]. However, Goldman Sachs has not provided any comment regarding the impact of their tariffs on foreign exporters, U.S. businesses, or the economy as a whole.
Meanwhile, a leading economist has issued a stark recession warning for the struggling U.S. economy[9]. The Fed's longer-run inflation target is 2%, and inflation persisting at those levels through the end of the year could exacerbate economic concerns.
It's important to note that Goldman Sachs CEO David Solomon, also known as DJ D-Sol, performed at a fundraiser[7]. This fact was previously mentioned but is included here for completeness.
In conclusion, the Goldman Sachs report provides a comprehensive analysis of the distribution of costs associated with President Trump's tariffs. While U.S. companies initially bore the bulk of the costs, consumers are expected to bear a larger share over time. The report's findings and their potential implications for the economy are a topic of ongoing debate.
Sources: 1. CNN 2. Bloomberg 3. Reuters 4. CNBC 5. Goldman Sachs Report 6. Wall Street Journal 7. The Hill 8. Forbes 9. Business Insider 10. Truth Social
- The distribution of costs associated with President Trump's tariffs shows that U.S. companies have absorbed the largest share, about 64%, as revealed in the Goldman Sachs report.
- The report further suggests that U.S. consumers, who currently absorb 22% of the tariff costs, are projected to see a significant increase, potentially reaching 67% by October.
- Foreign exporters currently absorb about 14% of the tariff costs but are expected to see a modest increase to 25% by October, according to the Goldman Sachs Report.
- The increase in the core Personal Consumption Expenditures (PCE) index by 0.2% due to tariffs, as predicted by the report, could lead to a 3.2% year-over-year core PCE inflation rate in December, potentially affecting the outlook for multiple interest rate cuts and exacerbating economic concerns.
