In early March, Goldman Sachs downgraded its prior economic forecast for gross domestic product (GDP) growth for 2025 from 2.4% to 1.7%. According to Jan Hatzius, Goldman’s chief economist, “The reason for the downgrade is that our trade policy assumptions have become considerably more adverse.”
CNBC reports, “Goldman is warning that tariffs could raise consumer prices and tighten financial conditions, while leading companies to delay investments.”
David Kelly, the chief global strategist at J.P. Morgan Asset Management wrote, “The trouble with tariffs, to be succinct, is that they raise prices, slow economic growth, cut profits, increase unemployment, worsen inequality, diminish productivity and increase global tensions. Other than that, they’re fine.”
Dispatches From The Front 