Goldman Sachs: Trump tax cuts, deregulation will boost growth; tariffs could be a drag

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Consumer Technology Association CEO Gary Shapiro discusses how tariffs impact the prices of laptops on The Claman Countdown.

Goldman Sachs last week released a forecast for the U.S. and global economies that projected the impact of President-elect Trump's victory on the economy in 2025, finding that the incoming administration's planned tax cuts will boost growth, though more aggressive tariffs could dampen that impact.

Goldman Sachs economists led by Jan Hatzius projected that the U.S. economy should grow about 2.5% in 2025 according to their baseline projection, which includes an assumption that the second Trump administration will bring some fresh tax cuts, regulatory easing, reduced immigration as well as higher tariffs on products from China and imported autos.

Their base case doesn't include a 10% across-the-board tariff on all imported goods, which Trump campaigned on, or a deportation program – both of which could have the effect of suppressing economic growth if implemented.

«We think that there are some offsetting effects: negative from tariffs and immigration, positive from fiscal policy and regulatory changes; and we get when we put this into our models offsetting effects and not a large net effect,» Hatzius explained at a briefing on Friday. 

FED'S FAVORED INFLATION GAUGE SHOWED PRICE GROWTH CONTINUED TO SLOW IN SEPTEMBER

President-elect Donald Trump's expected tax cuts and deregulation would spur growth, though more aggressive tariffs could dampen that impact, Goldman Sachs found. (Allison Robbert-Pool/Getty Images / Getty Images)

He said that they expect the Trump administration to implement its tariff policies relatively quickly, which will have the most impact on 2025, while fiscal policies like tax