As Trump berates Goldman, other economists agree that higher tariff inflation is coming

Goldman Sachs is taking the heat for its call that heavier tariff-induced consumer inflation is ahead, but it's far from alone in that view among its Wall Street brethren.

Despite investors' embrace of Tuesday's fairly benign consumer price index report, economists expect that the biggest impact to inflation is yet to come.

With pre-tariff inventories rolling off, effective tariff rates climbing higher and companies less willing to absorb higher costs from the duties, the general feeling is that consumers are increasingly going to feel the bite through the rest of the year.

“Tariffs could subtract 1% from GDP and add 1-1.5% to inflation, some of which has already occurred,” Michael Feroli, chief U.S. economist at JPMorgan Chase, said in a note. “There is considerable uncertainty around the degree of pass-through to consumer prices, given that this year's tariff increases are well larger than anything in the post-war US experience.”

President Donald Trump lambasted Goldman Sachs on Tuesday for research the firm's economists released over the weekend asserting that consumers will take on a significantly stronger hit from tariffs through the end of the year. Goldman Sachs economist David Mericle, appearing Wednesday on CNBC, defended the call and said the firm was undeterred by Trump's criticism.

In a Truth Social post, the president suggested CEO David Solomon fire the economist who wrote the piece or consider resigning himself.

However, if every market economist who is in the same camp on tariff impacts were to be dismissed, there would be a lot of empty desks on Wall Street.