As Trump Criticizes Goldman, Economists Warn of Rising Inflation from Higher Tariffs

Goldman Sachs is facing criticism from President Trump for predicting that higher tariffs will push consumer inflation up through year-end, but many Wall Street economists share the view. With pre-tariff inventories depleting, effective tariff rates near 18%, and firms passing costs to consumers, inflation could rise 0.3%-0.5% monthly, lifting core inflation to 3%-3.5%. GDP growth may slow by about 1%, though the Fed is still expected to cut rates in 2025. Risks include the end of tariff exemptions on goods under $800. Economists warn inflation could prove “sticky,” especially in services, despite expectations of a temporary tariff impact on the economy.