Goldman Sachs Advises Countries on US Trade Policies

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Goldman Sachs’ Role in Navigating US Trade Policies

Goldman Sachs has taken on a pivotal role in guiding nations through the complex landscape of the Trump administration’s international trade policies, as highlighted in a recent Wall Street Journal report.

Countries Seeking Guidance

Several countries, including South Africa, Japan, and Saudi Arabia, have turned to Goldman Sachs for advice regarding potential US-imposed tariffs. South Africa, for instance, sought the bank’s counsel following the Trump administration’s concerns about a new law permitting land confiscation from white landowners.

Goldman Sachs reportedly advised South African leaders, including President Cyril Ramaphosa, to consider making symbolic concessions to mitigate these concerns. The bank suggested revising the country’s black ownership laws, a recommendation that South Africa ultimately declined.

Japan’s Approach

Japan also engaged with Goldman Sachs to address Trump’s allegations that its tax system unfairly subsidizes exports. However, Japan expressed skepticism about altering its policies solely to appease the US administration’s demands.

Crucial Guidance for Avoiding Tariffs

The Wall Street Journal notes that Goldman Sachs’ insights have been essential for countries aiming to avert punitive tariffs. The bank emphasized that negotiations could be influenced by non-trade issues and political concessions that resonate with Trump’s support base.

Increased Urgency During Trump’s Second Term

Discussions with countries, particularly those whose central banks are under Goldman’s management, have intensified during Trump’s second term. Wall Street’s major financial institutions often provide strategic advice to foreign governments, and since Trump’s re-election, these consultations have become increasingly urgent.