President Donald Trump has told Goldman Sachs CEO David Solomon to either replace the bank’s chief economist or “just focus on being a DJ,” after a Goldman report said U.S. consumers will soon pay most of the costs from his tariffs.
The remarks came on Tuesday via a Truth Social post as Trump defended his trade policies and promoted what he called “massive” revenue going into the Treasury.
Trump said tariffs “have not caused inflation, or any other problems for America, other than massive amounts of cash pouring into our Treasury’s coffers.” Federal data shows tariff revenue jumped to almost $28 billion in July.
Inflation is still rising, though recent figures showed consumer prices increasing at a slower pace than forecast. Trump said foreign governments and companies, not U.S. consumers, are covering most of the costs.
Trump disputes Goldman over consumer impact
Trump accused David and Goldman of refusing to “give credit where credit is due,” saying the bank “made a bad prediction a long time ago on both the market repercussion and the tariffs.”
He added that if David cannot find a new economist, “maybe, he ought to just focus on being a DJ, and not bother running a major financial institution.” Trump did not name the economist he wanted replaced, but the report in question was written by Jan Hatzius, who has been Goldman’s chief economist since 2011.
Jan’s research note, published Sunday, estimated U.S. consumers had paid 22% of tariff costs by June. The report projected that share could rise to 67% by October if later tariffs have the same effect as the earlier ones. The analysis said many businesses are likely to raise prices as import duties take hold, pushing more of the burden onto shoppers.
Trump has postponed some of his toughest tariffs, delaying their impact on U.S. households. His “reciprocal” tariffs plan, introduced in April, was paused soon after and began in a smaller form just last week. Tariffs on Chinese goods, which reached 145% at their peak, have been reduced to 30% since May.
Court challenge to tariff policy
On Friday, Trump warned U.S. courts not to block his tariff program, saying it would damage the stock market and cause a “severe economic downturn.” He wrote that if “a radical left court” struck down the tariffs now, “it would be 1929 all over again, a great depression.”
He argued such a decision would destroy “the largest amount of money, wealth creation and influence the U.S.A. has ever seen” and make recovery impossible.
The warning came as a federal appeals court heard arguments on the legality of Trump’s trade measures. The dispute is over whether the tariffs are allowed under the International Emergency Economic Powers Act of 1977. Former House Speaker Paul Ryan told CNBC this week the Supreme Court could eventually strike down the duties entirely.
Trump’s administration has said the tariffs are part of a long-term strategy to protect U.S. industries. Economists, including those at Goldman, have warned that consumers will face higher costs in the months ahead. Several companies have already said they will raise prices to offset the duties.
Goldman has not commented publicly on Trump’s statements about David or Jan. The disagreement has highlighted the divide between the White House’s claims about who pays for tariffs and Wall Street’s projections of the impact on Americans.
If you're reading this, you’re already ahead. Stay there with our newsletter .
