Trump says tariffs have not caused inflation for US after lower-than-expected inflation data

• Trump suggests Goldman Sachs CEO should be 'DJ' rather than heading major financial institution, after report said US consumers will bear burden of president's tariffs

ISTANBUL

US President Donald Trump stated Tuesday that his reciprocal tariffs have not sparked a hike in inflation or caused "any other problems" for the US, as the annual inflation came below market expectations in July.

"It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers," Trump wrote on social media.

He stated that the US is taking "trillions of dollars" with the tariffs and that they have been "incredible" for the country, its stock market, its general wealth, and "just about everything else."

"Also, it has been shown that, for the most part, Consumers aren’t even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs," the president noted.

The annual inflation rate in the US was at 2.7% in July, below the market expectation of 2.8%.

According to official figures from the Bureau of Labor Statistics, the monthly inflation rate was also at 0.2%.

Goldman Sachs CEO ought to focus on being a DJ

Trump also fired back at a recent Goldman Sachs report that US consumers will end up bearing the brunt of the tariffs once levies finish working their way through the economy.

"David Solomon and Goldman Sachs refuse to give credit where credit is due. They made a bad prediction a long time ago on both the market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else," he said.

He suggested that Goldman Sachs CEO David Solomon should be a "DJ" rather than heading a major financial institution.

"I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution," he added.

On Monday, Goldman Sachs economists said in a report that the US companies have so far taken the bulk of the hit from Trump’s tariffs, but the burden will increasingly be passed on to consumers as companies hike prices, according to Bloomberg.

Consumers in the US have absorbed an estimated 22% of tariff costs through June, but their share will rise to 67% if the latest tariffs follow the pattern of levies in previous years, they wrote.