Goldman Sachs signals higher inflation due to tariffs - Breaking The News

Goldman Sachs signals higher inflation due to tariffs

22 July

1 min read

EPA/JUSTIN LANE

Goldman Sachs expects the United States' economy to be impacted by President Donald Trump's tariff policies in the near future, the investment bank's Chief Economist Jan Hatzius said in a letter to clients, as reported by CNBC on Tuesday.

Hatzius claimed that reciprocal tariffs will likely reach an effective rate of 15%, which would lead the Fed's preferred Personal Consumption Expenditures (PCE) Price Index to climb to 3.3% in 2025. However, the PCE inflation is expected to decline to 2.7% next year and to 2.4% in 2027, according to the report.

Additionally, Goldman Sachs' economists project the country's economy to grow at just a 1.1% annual pace in 2025, while the decline in real incomes triggered by tariff-linked price hikes is expected to increase.

tariffs goldman sachs

Navarro: No exemptions on steel, aluminum tariffs

3 hours ago

United States Senior Counselor for Trade and Manufacturing Peter Navarro told reporters on Thursday that Washington will keep its tariffs on steel and aluminum without exemption for the European Union."There will be no exemptions, no exclusions for steel and aluminum tariffs," the official stated. He explained that the US added over 400 new products to the list of these materials only this week to prevent manipulation and circumvention of...

Sefcovic: US 15% car tariff will be applied retroactively

6 hours ago

European Commissioner for Trade and Economic Security Maros Sefcovic said on Thursday that the United States' 15% tariff on cars and car parts will be applied retroactively back to August 1."I believe this is welcome news for our car industry, which was bleeding a lot of cash over the last few months," Sefcovic said. He also stated that the framework for the trade deal between the European Union and the US, which was released today, is "the first step,...

EU plans to buy $750B in US energy products

7 hours ago

The European Union announced on Thursday its plan to procure United States energy products worth $750 billion through 2028, as well as "at least $40 billion worth of US artificial intelligence chips," and to increase purchases of US military equipment.The US and the EU issued a joint statement earlier on the trade framework, outlining key terms of the deal. Per agreement, the bloc will drop all tariffs on US industrial goods, while Washington pledged to apply "the...

Lutnick: Trump smashing open foreign markets

19 August

United States Commerce Secretary Howard Lutnick said on Tuesday that US President Donald Trump is "smashing open" foreign markets for American goods by striking a series of trade deals.Asked by CNBC when concrete documents on trade deals struck with countries such as Japan, South Korea and the United Kingdom could be expected, Lutnick stressed that such documents are "weeks away," but insisted that they won't be complicated and long documents as...

This website uses cookies to ensure you get the best experience. Our Terms of Use and Data Protection Policy explain the data we collect, why we collect them, and how we may share them.