Goldman Sachs Warns Trump’s Tariffs Could Cause Massive Job Losses

Goldman Sachs Report Highlights Potential Job Losses from Trump’s Tariffs

According to a recent report by Goldman Sachs, broad tariffs recently enacted by President Donald Trump could lead to a significant rise in unemployment.

While the tariffs may result in the creation of 100,000 manufacturing jobs, the financial firm warns of potential job losses in other industries, potentially reaching 500,000. This figure doesn’t take into account the possibility of a recession, which could further deteriorate employment conditions.

The sectors most vulnerable to these tariffs are those heavily dependent on imported materials, including heavy machinery and semiconductor production.

The analysis draws on various academic studies exploring the impact of tariffs.

In essence, tariffs act as a tax on imports that American companies are required to pay, typically leading to increased prices for consumers within the U.S. Despite this, President Trump maintains that tariffs will generate revenue and offer strategic leverage over international counterparts.

The tariffs, initially applied to 185 countries on April 2, were reduced to 10% following market instability and treasury bond selloffs. Nonetheless, significant tariffs remain on Chinese imports, which represent approximately 17% of U.S. imports.

Goldman Sachs had previously indicated that Trump’s federal spending cuts might also hinder job growth.

“Uncertainty about both tariffs and government spending cuts could depress job growth,” the report stated. “We estimate that trade policy uncertainty will exert a roughly 20k drag on monthly employment growth, that the direct effects of federal spending cuts will reduce federal government payroll growth by 25-30k jobs per month this year, and that uncertainty about federal payments will reduce hiring by about 35k in sectors that rely heavily on federal funding such as state and local government, healthcare, and education.”

While the long-term effects of the tariffs remain uncertain, both reports suggest that Trump’s objectives of increased revenue and employment growth may not materialize.