Trump Criticizes Goldman Sachs Over Tariff Cost Forecasts
Former president calls on bank CEO to replace chief economist following report predicting higher consumer share of tariff costs
Former U.S. President Donald Trump has publicly urged Goldman Sachs Chief Executive David Solomon to replace the bank’s chief economist, following the publication of research forecasting that American consumers will soon bear a larger share of tariff-related costs.
In a post on social media, Trump stated that tariffs had not caused inflation or other economic problems, asserting instead that they had generated substantial revenue for the U.S. Treasury.
He added that Solomon should "get himself a new economist" or focus on other pursuits, referencing Solomon’s past involvement as a DJ, a role he stepped away from two years ago.
The comments came days after Goldman Sachs economists released a report estimating that U.S. consumers absorbed twenty-two percent of tariff costs through June 2025.
The report projected that this share could rise to sixty-seven percent by October if tariff patterns follow those seen in earlier rounds.
The bank did not comment on Trump’s remarks.
Goldman Sachs’ chief economist Jan Hatzius, co-author of the report, is a prominent figure in both Washington and Wall Street circles.
He has previously met with senior U.S. officials, including former President Joe Biden and Federal Reserve Chair Jerome Powell.
Hatzius was among a minority of economists in 2023 who accurately predicted that the U.S. economy would avoid recession.
The Goldman Sachs analysis aligns with projections from other major financial institutions warning that consumers are likely to face higher retail prices as a result of recent tariff measures.
Despite the enactment of several new tariffs by Trump in recent months, official data indicate that businesses have thus far absorbed most of the additional costs.
Recent economic data show that U.S. consumer prices increased by 0.2 percent in July 2025, leaving the annual inflation rate unchanged at 2.7 percent.
Core inflation, excluding food and energy, rose to 3.1 percent.
In a post on social media, Trump stated that tariffs had not caused inflation or other economic problems, asserting instead that they had generated substantial revenue for the U.S. Treasury.
He added that Solomon should "get himself a new economist" or focus on other pursuits, referencing Solomon’s past involvement as a DJ, a role he stepped away from two years ago.
The comments came days after Goldman Sachs economists released a report estimating that U.S. consumers absorbed twenty-two percent of tariff costs through June 2025.
The report projected that this share could rise to sixty-seven percent by October if tariff patterns follow those seen in earlier rounds.
The bank did not comment on Trump’s remarks.
Goldman Sachs’ chief economist Jan Hatzius, co-author of the report, is a prominent figure in both Washington and Wall Street circles.
He has previously met with senior U.S. officials, including former President Joe Biden and Federal Reserve Chair Jerome Powell.
Hatzius was among a minority of economists in 2023 who accurately predicted that the U.S. economy would avoid recession.
The Goldman Sachs analysis aligns with projections from other major financial institutions warning that consumers are likely to face higher retail prices as a result of recent tariff measures.
Despite the enactment of several new tariffs by Trump in recent months, official data indicate that businesses have thus far absorbed most of the additional costs.
Recent economic data show that U.S. consumer prices increased by 0.2 percent in July 2025, leaving the annual inflation rate unchanged at 2.7 percent.
Core inflation, excluding food and energy, rose to 3.1 percent.
