Goldman Sachs: 30 to 40 bps peak impact on Fed-favored price metrics from Trump win

Economists at Goldman Sachs Group analyzed the potential economic impact of a U.S. Republican or Democrat victory in the November election and warned of a hit to U.S. GDP if Trump wins.

Goldman Sachs said it doesn't expect further tariff increases if Harris wins, and the bank's economists wrote that Trump could raise tariffs on China, the European Union and Mexico, which would lead to a spike in inflation with a peak impact of 30 to 40 basis points on the Federal Reserve's favored price gauge. An additional 10 percent generalized tariff proposed by the Republican candidate would have an even bigger impact, although it would take longer.