'Significant consequences': Major bank comes out swinging against Trump’s tariff proposal

27 November 2024

Critics of President-elect Donald Trump's proposal for aggressive new tariffs were hoping he would back down from that idea. But Trump, in late November, announced that he plans to move forward with the tariffs as soon as he is sworn into office in January 2025 — including proposed 25% across-the-board tariffs on all goods imported into the United States from Mexico and Canada.

For some goods imported from Mainland China, Trump has proposed a 10% tariff.

Goldman Sachs is weighing in on Trump's tariff proposals — and not in a favorable way.

Goldman Sachs, according to Bloomberg News reporters Yongchang Chin and Weilun Soon, is warning that U.S. consumers could face "significant consequences" if the tariffs are enacted.

"The 25% levy on all products from Canada proposed by Trump would likely raise the price of fuels in the U.S., Daan Struyven, the head of commodities research for Goldman, said during a roundtable interview," Chin and Soon report. "The tactic is reminiscent of the first Trump term and could be a negotiating tool, he added."

Struyven told Bloomberg News that Trump's proposed tariffs "could in theory lead to some pretty significant consequences for three groups of people: U.S. consumers, U.S. refiners and Canadian producers."

Struyven added, however, "Given the focus from Trump to lower energy costs, we think Canada tariffs are somewhat unlikely."

Chin and Soon note, "The U.S. imports almost 4 million barrels of Canadian crude a day, which allows American producers to export more of their own oil. The chief executive officer of the Canadian Association of Petroleum Producers said tariffs would result in higher gasoline and energy costs for U.S. consumers."

Read Bloomberg News' full report at this link (subscription required).

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