Goldman Sachs warns that Trump's tariff proposal may exacerbate inflation

Goldman Sachs Analysis: President-elect Trump proposed a 25% tariff on goods from Canada and Mexico, which is expected to generate nearly $300 billion in revenue annually, but may cause a 0.9% increase in core PCE inflation. Jan Hatzius, Chief Economist at Goldman Sachs, said that this tariff would significantly push up consumer prices. Although the tariff proposal may be Trump’s negotiation strategy, the implementation is still uncertain, but the market’s expectation of a Fed rate cut has begun to weaken.