Blackstone and Goldman Sachs CEOs See Opportunities in Trump’s Trade Policies

Wall Street Leaders Weigh in on US Tariffs

Two of Wall Street’s top executives have highlighted potential upsides to Donald Trump’s trade policies, despite concerns they could slow down the US economy.

Blackstone CEO Stephen Schwarzman and Goldman Sachs CEO David Solomon acknowledged that while Trump’s protectionist tariffs have sparked fears of a recession and global trade war, they could also boost US manufacturing and reduce business regulations.

Could Tariffs Drive US Manufacturing Growth?

Speaking in India on Wednesday, Schwarzman, a well-known Trump supporter, suggested that tariffs could lead to increased domestic manufacturing, ultimately benefiting the wider economy.

“If we’re growing faster, we can consume more things,” he said, adding that it’s still too early to predict the full impact.

Meanwhile, Goldman Sachs’ Solomon told Fox News that businesses understand Trump’s goals but want greater policy certainty. While the 25% tariffs on steel and aluminium imports have triggered EU and Canadian retaliatory tariffs, he said companies were optimistic about Trump’s pro-business agenda.

A Shift in Business Confidence?

Solomon acknowledged that corporate America prefers lower tariffs, but welcomed Trump’s engagement with business leaders, saying:

“That’s a different experience than what we’ve had over the last four years.”

He also pointed out that deregulation efforts have removed barriers to business growth, and predicted a rise in initial public offerings (IPOs) in 2025, following a slow period for stock market listings.

At a Business Roundtable event on Tuesday, Trump reinforced his protectionist trade stance, arguing that tariffs were designed to bring jobs and production back to the US.

“The biggest win is if businesses move into our country and create jobs,” he told business leaders.

Trade War Risks Looming

Despite this optimistic outlook, global markets remain on edge. Trump’s tariffs on European goods—valued at €26 billion—have already prompted EU countermeasures, while Canada has imposed its own 25% tariffs on $21 billion worth of US products.

Beyond trade, Trump’s policies aim to reduce the US trade deficit and pressure Mexico and Canada to tighten border security and curb fentanyl trafficking. However, tensions with long-standing allies could disrupt international trade partnerships.

The biggest concern among businesses is Trump’s threat to introduce reciprocal tariffs on all trading partners from April 2, targeting countries with what the US deems unfair taxes, subsidies, and regulations.

Conclusion: A Business Boom or a Trade War?

While Wall Street leaders see potential benefits in Trump’s deregulation and domestic manufacturing boost, the risks of rising costs, supply chain disruptions, and strained international relations cannot be ignored.

If Trump’s tariffs succeed in revitalising US industry, business confidence could surge. However, if the trade war escalates further, global markets may struggle with uncertainty, volatility, and potential recession fears.

As the situation unfolds, investors and businesses must brace for a period of economic unpredictability—with both risks and opportunities on the horizon.

Source: (FT.com)