Goldman Sachs CEO David Solomon called Trump's tariffs in Canada and Mexico an effort to “level the playing field,” but said trade policy has sparked careful attention among fellow business leaders.
The harsh 25% tariffs on North American neighbours and the 20% collection in China came into effect Tuesday after Trump agreed to a one-month suspension.
“The president has been determined to have an imbalance in how trade exists, and he has a strong view of actively leveling the arena,” Solomon said at Australia's Financial Review Business Summit in Sydney on Tuesday.
“He's doing that view,” he added.
On Monday, Trump told reporters that he “no room remains” to help the country avoid tariffs, claiming he wasn't doing enough to curb the illegal fentanyl flow across the border.
The President also shows that import duties are a way to bring more manufacturing to the United States.
Solomon said how long the new taxation lasted has become a hot topic on Wall Street.
“How things stay, how far it goes… it's part of the uncertainty I'm talking about,” he said.
Economists warn that trade policies could reheat inflation, suck up investors and cause long-term market volatility.
The Dow Jones Industrial Average and the Tech Heavy S&P 500 have erased their profits since taking office.
“The chances of a 2025 recession are small, but not zero,” Solomon said.
The CEO also discussed Goldman's move to remove its diversity, fairness and inclusion sections from its annual shareholder applications, repeatedly reversing by other Wall Street giants like BlackRock and Bank of America.
“There are some of the changes given [with] Executive orders and laws need to communicate differently about these things,” Solomon said.
He nodded to Trump's executive order banning DEI beyond the federal level and his statement pushing private companies like Apple to end their controversial commitments.
“It doesn't stop us from our mission to have the most extraordinary talent to serve our clients,” added Solomon.
With post wire
