Goldman Sachs analysts say President Trump’s retaliatory plan against countries that retaliate with tariffs could reshape US trade policy, tariffs and taxes with key trading partners.
The firm cited a memo set by the US administration that expects to reveal its plans between April and August.
The investment bank also reinforced its stance on a 10% tariff on China and additional duties on key sectors such as semiconductors, pharmaceuticals and cars from Europe.
While the potential for retaliatory measures is widening, Goldman Sachs said a narrower target would emerge targeting select trading partners later this year.
The Trump Trade strategy appears to be a tactical effort to put pressure on trading partners while maintaining negotiating flexibility and reflects the ongoing direction of US trade policy.
This is consistent with the approach he used during his first term, when tariffs on China triggered a trade war that disrupted global supply chains.
