Goldman Sachs came out swinging today against President Trump’s proposed tariffs on steel and aluminum, saying the plan would make the United States less competitive on the global market.
“Import tariffs make the US less competitive by raising the prices of raw materials,” the bank wrote in a report cited by Bloomberg. It’s not just the U.S. economy that will suffer: The tariffs would punish some of America’s closest allies, including NAFTA partners and the EU.
Goldman wrote: “By imposing across-the-board tariffs to all steel and aluminum imports, the larger economic impact is on Canada, Mexico and the EU, and it ironically eases the economic impact to China and Russia.”
Per Marketwatch, Goldman added: “A tariff intended to support U.S. industry may end up boosting margins and investment for a small subset of producers while leaving the broader economy at a disadvantage via higher costs.”
Because the world is run by toddlers in suits, the European Union is already planning its tit-for-tat tariffs, reportedly with a plan to slap an import tariff of 25% on U.S. steel. It may also impose tariffs of clothing, cosmetics, and even Florida orange juice, Harley Davidsons, Levi Jeans, and Kentucky bourbon.
Banks, many industries, and even Speaker of the House Paul Ryan have all come out against Trump’s proposed tariffs as a bad idea for the economy and American consumers.