Trump criticizes Goldman Sachs' tariff forecast as incorrect, mocking the CEO: Just focus on being a DJ

Goldman Sachs CEO David Solomon has come under fire from U.S. President Donald Trump due to Goldman Sachs' tariff analysis predictions.

On Tuesday, August 12, Eastern Time, Trump posted on social media, accusing Goldman Sachs of making "incorrect predictions" about the market impact of tariff policies and consumer costs, specifically mocking Solomon and suggesting he should change careers and focus on his hobby of being a DJ.

Trump's post came two days after Goldman Sachs' team of economists released a research report on August 10, stating that American consumers would bear most of the burden of tariff costs. The report estimated that as of June, American consumers had shouldered 22% of the tariff costs, but if the latest tariffs follow previous years' collection patterns, it is expected that by October, the consumer burden will rise to 67%.

On his social media platform this Tuesday, Trump wrote, "I think David (Solomon) should go out and find himself a new economist, or maybe he should focus on being a DJ and not worry about running a large financial institution." This comment directly mocked Solomon's long-standing hobby as a DJ. A spokesperson for Goldman Sachs declined to comment on the matter.

Goldman Sachs Report Predicts Consumer Burden of Tariff Costs Will Rise to 67% by October

The research team led by Goldman Sachs Chief Economist Jan Hatzius released a detailed analysis of the impact of tariffs on consumers in a report last Sunday.

The report shows that the structure of tariff cost sharing in the U.S. is undergoing a significant shift. It estimates that as of June this year, American consumers had borne 22% of the tariff costs, and this proportion is expected to rise significantly in the coming months.

The report points out that if the latest round of tariffs follows the collection patterns of previous years, by October, the proportion of tariff costs borne by consumers will rise to 67%. The burden on American businesses will drop from 64% in June to less than 10%.

This prediction regarding the impact of tariffs on consumers sharply contrasts with statements from the Trump administration, which has repeatedly claimed that consumers would not face higher prices due to tariffs.

In his post this Tuesday, Trump wrote,

Trillions of dollars' worth of goods are being taxed, which has had an incredible impact on the U.S., the stock market, public wealth, and almost every other aspect. It turns out that even at this stage, tariffs have not brought inflation or any other problems to the U.S., except for a massive influx of cash into the U.S. Treasury. Furthermore, it is evident that in most cases, consumers have not even paid these tariffs, but rather companies and governments, many of which are foreign companies and governments, are the ones footing the bill.

The timing of the release of this research report is sensitive, coinciding with the market's close attention to inflation data.

On Tuesday, the July U.S. CPI showed a year-on-year increase of 2.7%, lower than analysts' expected growth rate of 2.8%, while the month-on-month increase of 0.2% met expectations. The core CPI for July increased by 3.1% year-on-year, accelerating from June's growth rate of 2.9% and the expected growth rate of 3.0%. The core CPI rose by 0.3% month-on-month, marking the highest growth rate in six months, but still aligned with Wall Street expectations Comments suggest that although the core CPI in July recorded the highest month-on-month growth since January, the moderate rise in commodity costs has alleviated concerns about price pressures driven by tariffs.

Trump Criticizes Wall Street Banks Again

This is not the first time Trump has publicly criticized large Wall Street banks. He previously accused JP Morgan and Bank of America of refusing to serve clients for political reasons, although these banks denied the allegations.

On Tuesday, Trump stated on social media:

"Sundar Pichai and Goldman Sachs refuse to give (consumers unaffected by tariffs) the recognition they deserve. They made incorrect predictions about market reactions and the tariffs themselves long ago; they were wrong, just as they have been wrong about many other things."

Despite these public disagreements, the banking industry as a whole is still expected to benefit from Trump's deregulation agenda and expectations of lower capital requirements. Financial stocks generally rose after Trump's election, reflecting market expectations for a more relaxed regulatory environment.

Government Mortgage Giants' IPO Plans Bring Collaboration Opportunities

Ironically, just less than two weeks ago, Trump met with Sundar Pichai at the White House to discuss Goldman Sachs' potential role in the IPO plans for government-owned Fannie Mae and Freddie Mac.

This IPO plan is seen as potentially the largest public offering to date, expected to bring substantial returns to participating banks. CEOs of Wall Street banks, including Sundar Pichai, have recently visited the White House individually to discuss specific arrangements for such transactions.

Trump's personal attacks on Sundar Pichai, including mocking his DJ hobby, highlight the complexity of the president's relationship with Wall Street. Sundar Pichai had previously paused his DJ activities after being criticized for the bank's strategic handling. This personalized attack style continues Trump's consistent approach towards corporate executives; last week he also attacked Intel's CEO, calling for his resignation