Goldman Sachs CEO David Solomon described President Trump’s tariffs on Canada and Mexico as an attempt to create fair competition. However, he mentioned that the trade policies have made other business leaders become more cautious.

The significant 25% tariffs on the neighboring North American countries, along with a 20% tariff on China, were put into action on Tuesday following a one-month delay agreed upon by Trump.

Speaking at the Australian Financial Review Business Summit in Sydney, Solomon stated, “The president strongly believes that there are trade imbalances that need to be addressed, and he is determined to rectify these imbalances to ensure fair competition.”

“He’s executing on that view,” he added.

On Monday, Trump told reporters there was “no room left” for the nations to avoid the tariffs, arguing they had not done enough to curb the flow of illicit fentanyl over the border.

The president has also indicated the import tariffs are a way to bring more manufacturing jobs to the US.

How long the new levies will last has become the hot topic on Wall Street, according to Solomon.

“How things stay in place, how far it goes … is some of the uncertainty that I’m talking about,” he said.

Economists have warned the trade policy could reheat inflation, spooking investors and causing prolonged market volatility.

The Dow Jones Industrial Average and tech-heavy S&P 500 have erased their post-inauguration gains.

Solomon said, “the chance of recession in 2025 is small but it’s not zero.”

The chief executive also discussed Goldman’s move to remove its diversity, equity and inclusion section from its annual shareholder filing, echoing a reversal by other Wall Street giants like BlackRock and Bank of America.

“With some of the changes given [with] the executive orders, and law, we have to communicate differently around these things,” Solomon said.

He nodded to Trump’s executive order banning DEI across the federal level, as well as his statements pushing private companies like Apple to end the controversial commitments.

“That doesn’t stop us from our mission to have the most extraordinary talent to serve our clients,” Solomon added.

With Post wires