Donald Trump launched a sharp public attack on Goldman Sachs chief executive David Solomon and accused the Wall Street leader of making “bad” predictions about tariffs. Trump went as far as to mock the previous DJ hobby of Solomon and question his fitness to run the bank after Goldman Sachs research suggested U.S. consumers are bearing an increasing share of tariff costs.
In a post on the right-wing Truth Social platform on August 12, 2025, the U.S. president said that Solomon should step down, find a new economist, and focus on being a disc jockey instead of running a major financial institution. Goldman Sachs has been publishing reports that discuss analyses and insights on current and future U.S. economic affairs.
The economic team of Goldman Sachs, headed by Jan Hatzius, recently estimated that American consumers absorbed around 22 percent of tariff costs by June. The bank projected this share could rise to 67 percent if the latest tariffs remain. Their models contradict claims from the Trump admin that foreign companies and governments are absorbing most of the financial burden.
Goldman Sachs has long warned that broad tariffs can slow global growth and prompt the Federal Reserve to cut interest rates more aggressively. The February 2025 Trump tariff wave hit imports from Mexico, Canada, and China. A Reuters tracker noted 333 companies publicly acknowledging cost pressures linked to the escalating trade measures by mid-August.
The aggressive tariff agenda of Trump saw the U.S. effective tariff rate surging from 2.5 percent to about 27 percent in April 2025. This is the highest since early 20th-century protectionism. Even as aggressive tariffs fueled market warnings, some banks like Goldman posted record trading gains by leveraging market volatility, reflecting how policy uncertainty can be monetized.
Economists point to recent U.S. inflation data as evidence that tariffs are starting to filter through to consumers. The Consumer Price Index for July ticked higher despite falling energy prices. Core inflation was partly driven by tariffs. This finding undermines the White House narrative and intensifies the debate over how tariffs are affecting everyday U.S. households.
Targeting Solomon follows a broader pattern of clashing with high-profile business leaders whose views challenge his policies. Trump has recently attacked executives from Intel and Apple over China-related issues. These public disputes blur the lines between policy and personal criticism, often amplifying the political stakes through social media confrontations.