Tariff debate deepens

Trump pressures Goldman Sachs to swap its chief economist amid tariff disputes and tariff revenue claims.

Trump pushes Solomon to replace Goldman economist over tariff forecast

Trump told Goldman Sachs CEO David Solomon to replace the bank’s economist or focus on being a DJ, amid a broader tariff dispute that has become a public clash between political rhetoric and market credibility.

The remarks came after Solomon warned that American consumers would shoulder more of the cost of new tariffs. Trump also highlighted what he calls large tariff revenue, tweeting that tariffs are filling the Treasury, while touting a White House roundtable appearance and a string of Treasury numbers.

The episode shows how tariff policy can become personal theater in Washington. When a president singles out a financial firm and its head economist, the line between policy analysis and political branding blurs. That pressure can unsettle investors who rely on independent economic analysis to gauge policy impact. At the same time, the episode underscores how tariff debates hinge on conflicting narratives about who pays the price and what policy gains are real.

Economists warn the visible revenue from tariffs may mask broader costs, including higher prices for consumers and potential supply chain disruption. If the public perceives benefits as uneven or delayed, political support for tariffs could erode even as Treasury receipts rise.

Highlights

Policy and perception remain intertwined as tariffs shape price signals and political credibility.