Former Goldman Sachs CEO Lloyd Blankfein on Friday appeared to take an indirect swipe at President Trump’s rollout of reciprocal tariffs as the stock market tanked for a second straight day amid an escalating global trade war.
Blankfein urged Trump to delay imposition of reciprocal tariffs by six months in order to give countries time to negotiate better trade deals with the United States.
“The switchboard at the WH must be burning up with gov’ts trying to surrender in this trade war. Why not give them a chance?” Blankfein wrote on X.
In a follow-up post, Blankfein recommended a strategic delay in implementing the reciprocal tariffs.
“Take the win! The Prez said he’d make us tired of winning…I’m there now!” he added.
Blankfein proposed that the administration keep the new 10% base tariff that goes into effect Saturday but delay the reciprocal measures slated to kick in Wednesday.
The former Goldman CEO, who stepped down as chief executive of the investment banking giant in 2018, has had a complicated relationship with Trump.
During Trump’s 2016 run for the White House, Blankfein was featured in a Trump campaign ad that was criticized for anti-globalist sentiments, which some interpreted as antisemitic.
In 2017, Blankfein publicly opposed Trump’s immigration ban, emphasizing the importance of diversity and stating, “This is not a policy we support.”
He also criticized Trump’s decision to withdraw from the Paris Agreement on climate change, calling it a setback for American leadership.
However, in 2020, Blankfein expressed reservations about Democratic presidential candidate Bernie Sanders, suggesting he might find it harder to vote for Sanders than for Trump.
Following the Jan. 6, 2021 Capitol riot, Blankfein criticized Wall Street for overlooking Trump’s character flaws, stating that the financial industry had “put a clothespin on our nose” because Trump delivered favorable economic policies.
Blankfein’s remarks Friday came on the second consecutive day of the market’s freefall.
The Dow Jones Industrial Average plummeted more than 1,600 points, adding to Thursday’s 1,679-point loss.
The S&P 500 dropped another 4% on Friday after already shedding 4.8% the previous day. Both indexes are now more than 15% below their recent peaks.
Meanwhile, the Nasdaq Composite — home to many tech giants with exposure to China — fell 3.8% Friday.
If it closes at this level, the index will be down more than 21% from its December high, officially entering bear market territory.
Much of the damage came in the wake of China’s retaliatory response to Trump’s tariffs.
Beijing’s commerce ministry on Friday announced a sweeping 34% tariff on all US imports — matching the new rate the White House set for Chinese goods earlier in the week.
The tech sector, particularly vulnerable to tariffs due to its global manufacturing and supply chains, bore the brunt of the selloff.
Apple shares slipped more than 3%, adding to a staggering 10% weekly drop.
Nvidia, a key player in artificial intelligence, fell 6%, and Tesla dropped 9%.
All three companies are heavily reliant on Chinese production and sales.
As tensions flared with China, Trump appeared to open a window for negotiation with another trade partner — Vietnam.
Posting on Truth Social, Trump said he had spoken with Vietnamese leader Tô Lâm about the possibility of easing new tariffs.
“Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the US,” Trump wrote.
“I thanked him on behalf of our Country, and said I look forward to a meeting in the near future,” he added.
The announcement had an immediate impact on markets. Shares of Nike, which manufactures about a quarter of its footwear in Vietnam, rose following Trump’s comments.
Trump’s 46% tariff on Vietnamese goods is scheduled to take effect next week, and analysts warn that global supply chains could face continued disruption if trade tensions escalate further.
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