Goldman Sachs CEO David Solomon revealed the business community's true thoughts on President Donald Trump's tariffs early Wednesday, telling FOX Business' Maria Bartiromo that, while members of the community want "lower tariffs everywhere," they understand Trump's intentions.
"I think the business community understands what the president is trying to do with… tariffs. The business community is always going to want lower tariffs everywhere… in the world," he said in an exclusive interview on "Mornings with Maria."
"At the moment, there is some uncertainty in the markets digesting that, but we're going to have to watch and see how this all plays out."
Some major banks have revised their economic forecasts in the midst of the current environment, including Goldman Sachs economists.
Goldman Sachs CEO David Solomon said Wednesday that the business community "understands" President Trump's intentions with tariffs. (REUTERS/Shannon Stapleton / Reuters Photos)
In a "Sunday Morning Futures" exclusive that aired over the weekend, the president responded to the business community's search for clarity by hinting that existing tariffs could rise in the future.
He also declined to directly answer whether he predicts the U.S. economy could see a recession this year, telling Bartiromo the country will see a "period of transition" as his policies to "bring wealth back to America" take effect.
The soundbite set off a stock selloff this week.
Trump's 25% tariffs on aluminum and steel imports, which he threatened to inflate to 50% at one point, took effect early Wednesday. The European Union responded with retaliatory tariffs on $28 billion worth of U.S. exports beginning April 1st.
Trump's reciprocal tariffs are planned for April 2.
President Donald Trump, accompanied by Commerce Secretary Howard Lutnick (L) takes a question from a reporter in the Roosevelt Room of the White House on March 3, 2025, in Washington, DC. (Andrew Harnik/Getty Images / Getty Images)
Solomon, on Wednesday, responding to questions about mergers and acquisitions (M&A) and IPOs in light of the current economy, said activity levels are "slightly better" than they have been over the last 24 months.
"There's still an enormous amount of pent-up demand both for capital markets activity and M&A activity," he said.
"I would say, at this moment, the level of uncertainty is a little bit higher, and that has kept some possible transactions on the sidelines, but the overall level of dialogue, as people are thinking strategically about where they want to drive their businesses, is certainly increasing."
Solomon said he expects a pickup in activity across both the capital markets and M&A as the year progresses.