Trump's 90-Day Tariff Pause 'Increased The Level Of Uncertainty,' Triggered Market Repricing: Goldman Sachs CEO

In the wake of global market turbulence, Goldman Sachs CEO David Solomon has pointed to the uncertainty surrounding U.S. trade policy as the primary cause.

What Happened: Solomon, in an interview with CNBC on Tuesday, highlighted a shift from the optimism that characterized the start of the year, particularly around the U.S. presidential inauguration, to the current prevailing uncertainty. This uncertainty, particularly in relation to trade policy and reciprocal tariffs, has triggered significant market repricing.

“Markets are looking to reprice the value of things based on the uncertainty they have around,” stated the Goldman Sachs CEO.

Asset classes across the spectrum are feeling the pinch. Equities are under pressure, bond yields are up, the U.S. dollar is weakening, and gold prices have reached record highs. Solomon viewed these shifts as part of a wider adjustment in investor expectations, as markets attempt to anticipate the possible impacts of changing trade policies.

Interestingly, Solomon noted a deviation from traditional investor behavior. Usually, investors would seek the safety of U.S. Treasuries when equities decline due to uncertainty. However, a minor shift driven by global investors de-risking their portfolios has put downward pressure on the dollar and, consequently, on Treasuries.

Businesses and investors are holding off on major decisions amid trade policy uncertainty. Solomon remains cautiously optimistic that negotiated trade deals could guide markets forward.

The Goldman Sachs CEO opines that the 90-day pause did give some breathing room for the market as things were progressing very quickly, however, it did not decrease the uncertainty. “In fact, in some ways the delay increased the level of uncertainty,” stated Solomon.

Why It Matters: This isn’t the first time Solomon has expressed concern over trade policy. In April 2025, he warned of “material risks” to U.S. and global economies due to tariff fears.

His warning came as the International Monetary Fund downgraded its 2025 growth forecast for the United States, citing President Donald Trump‘s sweeping tariffs and a surge in economic uncertainty as major headwinds. The current market volatility underscores the significant impact of trade policy uncertainty on investor sentiment and market dynamics.

That being said, Solomon remains confident in the U.S.’s longstanding preeminence as an investment destination, built on decades of strong economic performance, innovation, and robust capital markets. “Relative performance of the U.S,, is something that’s happened over very long period of time, and you can’t reverse it 100% in five minutes,” stated the CEO.

The S&P 500 SPY has dropped 8.32% over the past month, while the NASDAQ 100 QQQ has fallen more than 9% during the same timeframe.