Goldman Sachs' chief economist anticipates a rise in tariffs, particularly on copper and key minerals, with significant implications for inflation and economic growth forecasts.
Goldman Sachs' chief economist David Mericle predicts U.S. tariffs will increase from 10% to 15%, with copper and key minerals facing 50% tariffs. This change may worsen inflation and slow economic growth, leading the firm to revise its core inflation forecast for 2025 to 3.3% and GDP growth to 1%. Mericle noted a projected 1% reduction in GDP growth for this year due to these tariffs.