Goldman Sachs CEO Says Market Negative on Tariffs as Political Tools

President Donald Trump’s use of tariffs as part of a political agenda is a potential drag on markets, according to Goldman Sachs CEO David Solomon.

“The issue is that the president is using tariffs as a broader agenda,” Solomon said in a CNBC interview at Recode’s Code Conference in Scottsdale, Ariz. “There’s no question if the president continues to use tariffs for a broader, political agenda, it can have an impact on market activity.”

Solomon said he would rather see less of that, and a “more focused approach” on resolving larger trade issues. The Wall Street CEO agreed with the president that there are fundamental issues of disagreement that “are very significant” between the U.S. and China.

“I agree with the president in pushing this, that we have to rebalance,” Solomon said. “The question is, how will it happen, and over what period of time? I think we can make progress on narrow issues around trade.”

Still, the Goldman chief executive said “uncertainty” and “dislocation” that comes with tariffs and a trade war is “bad for risk assets.” But he also said it’s weighing on the economy.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza