Goldman Sachs Economist Predicts Extended U.S. Tariff Negotiations Impacting Semiconductor and Pharma Sectors

Goldman Sachs Chief Economist Jan Hatzius recently indicated that the anticipated reinstatement of reciprocal tariffs by the Trump administration on July 9 is unlikely. Speaking at the American Enterprise Institute, Hatzius suggested that the White House may opt to prolong trade negotiations rather than enforce the deadline. His analysis highlights a substantial increase in the U.S. tariff rate, which has risen approximately 10 percentage points this year. Furthermore, Hatzius’s team projects an additional 4 to 5 percentage point increase driven by targeted 25% tariffs on key sectors including semiconductors, communication equipment, pharmaceuticals, and copper. These developments underscore the ongoing complexities in U.S. trade policy and its impact on global supply chains, emphasizing the importance for investors and market participants to monitor tariff adjustments closely.