Goldman Sachs COO: Why Tariffs Won’t Ease After The Midterms

Goldman Sachs President and COO John Waldron offers a clear warning on the direction of U.S. economic policy, saying the administration is unlikely to revisit or roll back tariff regimes after the midterms. According to Waldron, tariffs have become a permanent feature of foreign-policy strategy, with companies absorbing much of the cost so far—something he believes will shift towards greater price pass-through and stickier inflation ahead. While he does not foresee an inflation spike, he emphasises that bringing inflation down will remain difficult, even as labour pressures ease and corporate layoffs begin to pick up in 2026. With markets already navigating significant volatility, Waldron’s outlook highlights the delicate balance between tariff pressure, wage dynamics and effective tariff rates drifting lower over time. This discussion offers a timely lens on economic risk, corporate margins and the complex forces shaping the next phase of U.S. inflation.