The CEOs of Blackstone, the world’s largest hedge fund, and Goldman Sachs, one of Wall Street’s most renowned investment banks, have voiced their support for U.S. President Donald Trump’s tariff policies.
They also dismissed concerns that Trump’s tariffs could push the U.S. and global economy into recession.
According to the Financial Times (FT), Blackstone CEO Stephen Schwarzman told reporters in India on Wednesday that Trump’s tariffs would lead to a sharp revival in U.S. manufacturing activity.
Schwarzman has publicly supported Trump in the upcoming election and has made substantial financial contributions to his campaign.
He argued that, given the size of the U.S. economy, tariffs would eventually benefit the global economy.
Goldman Sachs CEO David Solomon also stated that business leaders understand what the president is trying to achieve with tariffs.
While Solomon added that he would prefer greater clarity in Trump’s trade policies, he still supported the tariff measures.
On Wednesday, Trump officially imposed a 25% tariff on all steel and aluminum imports to the U.S., prompting retaliatory tariffs from the European Union (EU) and Canada.
The EU plans to impose tariffs on $28 billion worth of U.S. goods starting April 1. On Thursday, Canada will impose a 25% tariff on $21 billion worth of U.S. steel, aluminum, computers, sports equipment, and cast iron products worth.
Concerns are mounting that Trump’s tariffs and protectionist trade policies could drag the global economy into recession and increase geopolitical instability.
Solomon acknowledged that businesses worldwide generally prefer lower tariffs. However, he stated that he broadly supports Trump’s policy agenda.
Speaking to Fox News, Solomon praised Trump’s approach to engaging with the business community, calling it a different experience from the previous four years under former President Joe Biden.
He remained reserved in his comments about tariffs, instead focusing on the positive aspects of Trump’s policies.
He also noted that CEOs are excited about the tailwinds created by deregulation, as regulations have acted as a major headwind, hindering growth and investment.
Meanwhile, Solomon and other business leaders met with Trump on Tuesday night at an event hosted by the Business Roundtable, an association of CEOs from 200 major U.S. corporations.
At the meeting, many attendees expressed concerns about the ongoing economic downturn and the impact of trade wars, citing sharp declines in their companies’ market capitalization and instability in capital markets.
However, Trump reaffirmed his commitment to pushing forward with tariffs.
He told attendees that tariffs would ultimately create jobs in the U.S. and boost industrial production. He added that if companies relocated to the U.S. and generated employment, that would be an even more significant victory than the tariffs.
