China-US Economic War, the Cost is Paid by Americans, Trump Exposed, Immediately Broken Down
A well-known American investment bank, Goldman Sachs, recently released a research report stating that American consumers will bear the cost of the economic war, a conclusion that directly contradicts President Donald Trump's long-standing claims.
According to the report's calculations, from April to June this year, American consumers have already borne 22% of the cost. If the current structure remains unchanged, this proportion will surge to 67% by October.
This statement is tantamount to a slap in the face of the core logic of the tariff policy, prompting Trump to launch a fierce attack on Goldman Sachs and its CEO David Solomon on social media, accusing them of not seeing his achievements, even mocking Solomon for being better off returning to be a DJ.
Goldman Sachs' conclusion is definitely solid. It is the importers who pay first, then pass it on to the retail price, which is ultimately borne by the consumers. This is a common knowledge in economics.
Previous empirical studies have shown that the economic war initiated by Trump during his first term against China has largely fallen on American businesses and consumers.
Initially, companies may absorb part of the impact by compressing profits, but after the profit margin is continuously eroded, raising prices becomes an inevitable choice.
Goldman Sachs once again reveals this transmission path with data, but this time it directly conflicts with Trump's narrative.
For Trump, the economic war is a political trademark.
He repeatedly claimed that the economic war would not increase domestic inflation or raise living costs for Americans, but rather make foreigners bleed.
However, Goldman Sachs, as a top Wall Street investment bank, not only has high authority in the market and investment circles, but also has close ties with the Republican camp.
This kind of criticism from within one's own side is often more damaging than criticism from opponents.
From the reaction, Trump could not come up with any evidence to refute Goldman Sachs' calculation, so he turned to sarcastically and personally attacking the CEO of Goldman Sachs. This emotional response precisely proves that the report hit the most sensitive nerve that Trump did not want to be touched, so he was immediately broken down.
Original: www.toutiao.com/article/1840405795833984/
Statement: This article represents the views of the author.