Trump says tariffs bring US 'trillions', slams Goldman Sachs and CEO's predictions

UK President Donald Trump claimed on Tuesday (12 August) that tariffs are generating "trillions" of dollars for the US economy without fuelling inflation. In a post on his social media website 'Truth Social', he criticised Goldman Sachs and its CEO David Solomon for their negative predictions, suggesting Solomon should "focus on being a DJ" rather than running a financial institution.

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US consumer prices rose in July, with tariffs pushing up costs for services and goods.
Economists warn more price hikes are coming as pre-tariff stock runs out.
Data reliability is in question after staffing cuts and the firing of the BLS chief.

US consumer prices increased moderately in July, though rising costs for services such as airline fares and some tariff-sensitive goods like household furniture caused a measure of underlying inflation to post its largest gain in six months.

The mixed report from the Labour Department's Bureau of Labour Statistics on Tuesday did not change financial market expectations that the Federal Reserve would cut interest rates in September amid signs of a deterioration in labour market conditions

Screenshots of post on social media website 'Truth Social' by US President Donald Trump, August 12, 2025. – Screengrab/Social media website/via REUTERS

Economists, however, cautioned that higher prices from President Donald Trump's sweeping tariffs were still coming. They argued that businesses continued to sell merchandise accumulated before the import duties came into effect.

While financial markets breathed a sigh of relief on the data, concerns are mounting over the quality of inflation and employment reports following budget and staffing cuts that have resulted in the suspension of data collection for portions of the Consumer Price Index basket in some areas across the country. Those worries were amplified by the firing of Erika McEntarfer, the head of the BLS, early this month after data showed stall-speed job growth in July.

Trump on Monday nominated Heritage Foundation economist E.J. Antoni, a critic of the BLS, to head the statistics agency. Antoni was a contributor to "Project 2025," the controversial conservative plan to overhaul the federal government.