How to negotiate with Trump? The target of help from many countries is: Goldman Sachs!

Source: Wall Street News

Trump tariffs disturb the global economy, and countries around the world have turned to Wall Street banks for advice on how to deal with U.S. trade policy.Goldman Sachs became a trade "advisor" to many governments, providing advice from amending the law to political concessions.

On April 28, according to the Wall Street Journal, as Trump launched a global trade war, countries such as South Africa, France, Saudi Arabia and Japan consulted Goldman Sachs to try to understand how to negotiate with the Trump administration.

Goldman Sachs bankers said negotiations with the Trump administration could be affected by trade-related issues and could require political or symbolic concessions to the White House, people familiar with the matter said.

According to the report, this highlights the uniqueness of Trump's trade policy, which not only concerns numbers and tariffs, but also political sentiment and personal preferences.

Japan consulted Goldman Sachs on how to deal with Trump's allegation that its tax system actually subsidizes exports, which is not conducive to U.S. manufacturers, according to people familiar with the matter.In talks with Goldman Sachs, the Japanese government expressed doubts about changing its tax policy just to please the U.S. government.

Wall Street's largest bank provides corporate clients with various business consulting, including mergers and acquisitions, IPOs and restructuring.They also provide regular guidance to foreign governments.The report pointed out that these talks have become more urgent as Trump returns to the White House.

However, White House spokesman Kush Desai said trading partners who hope to reach an agreement with the United States must reduce tariffs and non-monetary barriers.Any other advice from outside the government should be considered pure speculation.

South Africa: Amend the law to please Trump?

However, Goldman Sachs' advice may not be effective.The Wall Street Journal specifically mentioned South Africa in its report, saying earlier this year, South Africa realized that U.S. tariffs were coming and turned to Goldman Sachs to seek how to appease President Trump.

South African leaders, including President Cyril Ramaphosa, have held several talks with the bank on trade and improving relations with the United States, people familiar with the matter said.One piece of advice from Goldman Sachs to the South African president is:

Consider amending a law, even if only slightly, that requires black people to own some companies, and another law that allows the government to take property from landowners to resolve racial disparities.

Disclaimer: The views in this article only represent the author's personal views and do not constitute investment advice of this platform. This platform does not make any guarantees for the accuracy, completeness, originality and timeliness of article information, nor is it liable for any losses caused by the use or trust in article information.