Business Community Understands Trump’s Tariffs: Goldman Sachs CEO

Executives also desire more policy certainty as they navigate market turbulence, said David Solomon.

Goldman Sachs Chairman and CEO David Solomon attends a session at the 50th World Economic Forum (WEF) annual meeting in Davos, Switzerland, on Jan. 21, 2020. Denis Balibouse/Reuters

While financial markets are unsettled amid the Trump administration’s trade policy changes, Goldman Sachs CEO David Solomon says the business community understands President Donald Trump’s tariff plans.

The bank executive said in a March 12 interview with Fox Business host Maria Bartiromo that while there is “some uncertainty” in the U.S. economy, business leaders realize that the president is trying to lower tariffs “everywhere in the world.”

“At the moment, there is some uncertainty. The market is digesting that, but we’re going to have to watch and see how this all plays out,” Solomon said.

Solomon said he agrees with the administration that North American neighbors have not done enough to curb the flow of fentanyl.

He also said that other countries have been taking advantage of the United States, echoing the case presented by White House officials.

Still, the Goldman Sachs chief says that executives crave more policy certainty as tariff-driven headwinds impact efforts to bolster capital investment and growth.

“I would say, at this moment, the level of uncertainty is a little bit higher and that has kept some things on the sidelines, some possible transactions on the sideline, but the overall level of dialogue, as people are thinking strategically about where they want to drive their businesses, is certainly increasing,” Solomon said.

A recent survey found that CEO confidence has been diminishing.

According to business magazine Chief Executive’s recent CEO Confidence Index, fielded on March 4 and March 5 with more than 220 respondents, U.S. CEO confidence is at its lowest level since November 2012.

Trump’s 25 percent tariffs on all steel and aluminum imports went into effect on March 12, and the administration’s reciprocal tariffs are poised to be implemented next month.

Major U.S. trading partners have already announced their retaliatory measures.

The European Union announced counter-tariffs on $28 billion of U.S. goods affecting a diverse array of products, including agriculture, apparel, and household appliances.

This prompted Trump to threaten to impose a 200 percent levy on alcoholic beverages from France and other bloc countries.

Canada also introduced $21 billion in broad-based retaliatory tariffs, including computers, cast iron products, metals, and sports equipment.

Others, including the United Kingdom and Australia, have so far not followed through on retaliation.

After the Nasdaq Composite Index and the S&P 500 slipped into correction territory—a 10 percent decline from the peak—the administration dismissed the market swings as temporary and said it’s focusing on creating long-term positive changes in the U.S. economy.

“Markets are going to go up, and they’re going to go down. We have to rebuild our country,” Trump told reporters at the White House on March 10.

Speaking in an interview with CNBC’s Squawk Box on March 13, Treasury Secretary Scott Bessent said the president and his team are more concerned about the “real economy” rather than “a little volatility” on Wall Street.

“We’re focused on the real economy. Can we create an environment where there are long-term gains in the market and long-term gains for the American people?” Bessent said.

While a majority of Americans say the president’s moves have been too “erratic,” according to a new Reuters-Ipsos poll, 41 percent believe his economic policies will pay off in the long run.