Countries Negotiating With Trump Over Tariffs Turn to Goldman Sachs

Summary

Podcast Summary: WSJ What’s News Episode: Countries Negotiating With Trump Over Tariffs Turn to Goldman Sachs
Release Date: April 28, 2025

---

1. Universities Push Back Against Trump Administration

In the latest developments, approximately ten prestigious private universities, including institutions like Harvard and Columbia, have formed a collective to resist the Trump administration's recent demands. The administration has criticized these universities for not adequately protecting Jewish students from antisemitism and has extended its scrutiny to broader aspects of higher education.

Key Points:

• Administration's Demands: The Trump administration is not only focusing on combating antisemitism but is also seeking increased oversight over university admissions, faculty hiring, curriculum, teaching, and research. Such measures threaten the autonomy of these academic institutions.

• Universities' Response: Faced with threats of frozen or canceled research funding and grants, the universities view these demands as overreaches that could compromise their independence. By banding together, they aim to present a unified front to prevent individual negotiations that could lead to capitulation under pressure.

Notable Quotes:

• Doug Belkin (WSJ Higher Education Reporter) at [00:53]: "Everything really comes down to Trump's feelings."
• Doug Belkin at [02:12]: "The administration is asking for oversight of things like admissions and faculty hiring and to some extent curriculum and teaching and research and... that would end the independence of the universities."

Challenges Ahead: The collective's ability to withstand administrative pressure remains uncertain. Legal battles are imminent, with universities like Harvard suing based on First Amendment and due process grounds. The administration possesses multiple strategies, including restricting international student enrollments and challenging the universities' tax-exempt status, which could complicate the resistance efforts.

---

2. Market Overview: US Stocks and Commodities Trends

The financial markets experienced volatility, with major US stock indexes closing mixed for the day. Amid economic uncertainties, investors increasingly turned to hard assets such as gold and silver as safe havens.

Market Performance:

• Stock Indices: The Dow Jones Industrial Average rose by approximately 0.3%, the S&P 500 edged up by 0.1%, while the Nasdaq Composite slipped by 0.1%.

• Commodities: Gold prices surged around 41% over the past year, reaching a record high in dollar terms before a slight pullback. Silver appreciated by approximately 23% during the same period, outperforming the S&P 500's 6% return.

Investor Sentiment: Deputy Editor Aaron Back of Heard on the Street highlighted the attractiveness of commodities as hedges against inflation and broader financial instability.

Notable Quotes:

• Aaron Back at [05:13]: "You obviously have fear of inflation. Inflation tends to be good for gold... precious metals... become more attractive in those types of situations."

Insights: The preference for gold and silver is driven by fears of inflation, political instability, and potential undermining of the US Dollar's role globally. Unlike bank-held assets, precious metals offer liquidity and value retention across borders, making them appealing in times of uncertainty.

---

3. Global Response to Trump's Tariffs: Goldman Sachs as Advisor

As President Trump's tariffs oscillate between implementation and pauses, several countries are seeking strategic guidance to navigate the challenges posed by these trade policies. Goldman Sachs has emerged as a primary advisor for nations grappling with how to mitigate the impact of Trump's tariffs.

Countries Involved:

• South Africa, France, Saudi Arabia, Japan: These nations have actively engaged with Goldman Sachs to formulate responses to the evolving tariff landscape.

Goldman's Strategic Advice: Doug Belkin explains that Goldman is advising these countries to address domestic policies that have drawn criticism from Trump and his administration, thereby potentially easing tariff pressures.

Notable Quotes:

• Doug Belkin at [07:22]: "Goldman has for a very long time been known for its connections to US Government administrations... Countries are seeking advice."
• Doug Belkin at [08:07]: "The bottom line advice from Goldman to South African officials is, look, no, everything really comes down to Trump's feelings."

Specific Recommendations: For instance, in South Africa, Goldman advises reconsidering laws mandating black ownership of certain companies and laws permitting government seizure of property to address racial disparities. These recommendations aim to align South Africa's policies with the Trump administration's priorities, potentially leading to more favorable trade terms.

Countries' Reactions: Responses have been mixed. South Africa's president has indicated that Goldman's recommendations may not align with the country's commitment to transforming historical apartheid imbalances, suggesting a cautious approach to implementing such advice.

Outlook: While Goldman Sachs provides strategic counsel, the success of these nations in reducing tariff burdens depends on their willingness to adjust domestic policies in ways that resonate with the Trump administration's directives.

---

4. Trump Administration's Escalation on Immigration Enforcement

President Trump is intensifying his campaign against sanctuary jurisdictions—states and cities that do not fully cooperate with federal immigration authorities. An executive order slated for signing aims to identify and penalize these jurisdictions within a month.

Executive Order Highlights:

• Identification of Sanctuary Jurisdictions: The Attorney General and Secretary of Homeland Security are tasked with compiling a list of non-compliant cities and states.

• Potential Penalties: Designated jurisdictions may face federal funding cuts and legal actions if they fail to align their laws and practices with federal immigration enforcement.

• Civil Rights Cases: The administration plans to pursue cases against areas perceived to prioritize immigrants unlawfully residing in the US over citizen interests.

Implications: This move signifies a robust effort by the Trump administration to enforce strict immigration policies, potentially leading to increased tensions between federal authorities and local governments.

---

5. Additional News Briefs

• European Power Restoration: Amid a significant electrical outage in the Iberian Peninsula, Spain and Portugal are actively working to restore power. Initial reports suggest the outage was due to technical or cable issues, with no evidence of a cyberattack.

---

Produced by: Anthony Bansi
Supervising Producer: Michael Cosmides

Host: Alex Sosale
Organization: The Wall Street Journal

---

This summary encapsulates the key discussions and insights from the April 28, 2025, episode of WSJ What’s News, providing a comprehensive overview for those who did not tune in.

Transcript

[Uber Representative]

You know that feeling when someone shows up for you just when you need it most? That's what Uber is all about. Not just a ride or dinner at your door. It's how Uber helps you show up for the moments that matter. Because showing up can turn a tough day around or make a good one even better. Whatever it is, big or small, Uber is on the way. So you can be on yours. Uber on, on our way.

[Alex Sosale]

How to negotiate with President Trump over tariffs Countries seek Goldman Sachs advice.

[Doug Belkin]

Everything really comes down to Trump's feelings. So as you're looking for a pathway to better trade terms and lower tariffs, you might want to consider addressing these issues that both Trump and Musk have publicly basically blasted.

[Alex Sosale]

Plus, Trump escalates his battle against Democratic led states and cities that don't fully cooperate with immigration authorities. And elite universities are banding together to resist the Trump administration. It's Monday, April 28th. I'm Alex Sosale for the Wall Street Journal. This is the PM edition of what's the top headlines and business stories that move the world today. Over the past few months, the Trump administration has taken aim at universities like Harvard and Columbia because it says the universities have not done enough to protect Jewish students from antisemitism. Now we're exclusively reporting that universities are banding together to resist the Trump administration's actions. A White House spokesperson said that the Trump administration is committed to reforming higher education and combating antisemitism. WSJ higher education reporter Doug Belkin is here now to discuss. Doug, how many universities are part of this collective?

[Doug Belkin]

There's about 10 universities that are part of the collective right now. They're mostly private, wealthy blue state universities that have been approached by the Trump administration or are fearful that they are next. They see themselves as the locus of resistance and they do believe that the number will grow.

[Alex Sosale]

So why are these universities doing this? What is their goal here?

[Doug Belkin]

The Trump administration is asking a lot of several universities right now and they're threatening to, and in some cases they have moved to freeze or, or cancel research funding and grants. So universities are in a really tight spot. Things that the Trump administration is asking for start with asking the schools to prevent antisemitism, to make sure that harassment of Jewish students ends. But it goes a little bit beyond that. The administration is asking for oversight of things like admissions and faculty hiring and to some extent curriculum and teaching and research and. And that would end the independence of the universities. And that's where they are not willing to go right now.

[Alex Sosale]

Is it that the universities are trying to avoid the fate of some top law firms where one deal led to the others following suit.

[Doug Belkin]

Right. The law firms were picked off one by one. And the universities are trying to avoid that negotiating error by banding together and trying to draw a line that they can all hold to make it more difficult for the administration to essentially impact any one of them individually.

[Alex Sosale]

Can they succeed in resisting the Trump administration this way, or is there something that could undermine their efforts?

[Doug Belkin]

That's the $64,000 question right now. When Harvard was given a list of demands by the task force, they went public with that list. And in that list, they said that they would not meet a number of the demands. Harvard has said that they've sued on the grounds that their First Amendment rights and their due process rights have been abused. And so they're hoping that the judge will stop the Trump administration. The issue that's at play here, though, is that the administration has a lot of different levers. They could potentially stop international students from enrolling. They're going after their tax exempt status. It's not clear legally where they'll win and where the Trump administration will win. And beyond that, there's future research funding that the Trump administration could make harder for Harvard to get or the universities to get. And so it's not clear how this will play out.

[Alex Sosale]

That was WSJ reporter Doug Belkin. Thank you, Doug.

[Doug Belkin]

Thanks very much.

[Alex Sosale]

US Stocks wobbled throughout the day, and major indexes ended the day mixed. The dow rose about 0.3%, the S&P 500 was up about 0.1%, and the Nasdaq fell 0.1%. In times of economic turmoil, many investors turn to hard assets like gold and silver. This current moment is no exception. Gold is up around 41% over the past 12 months, and last week it reached a record high in dollar terms before pulling back. And silver has risen around 23% over the past year, lower than gold, but still beating the S&P 506% return over that period. Deputy editor of Heard on the Street, Aaron Back, told our your Money Briefing podcast what makes commodities like gold and silver so appealing to investors trying to hedge against financial chaos?

[Aaron Back]

You obviously have fear of inflation. Inflation tends to be good for gold. You also have fear of a more general nature. You have fear that there's political instability in the United States. You have fear that the role of the US Dollar is being undermined. Let's say you had to take your money out of the United States in a hurry and there were capital controls, hard assets like precious metals, diamonds, things like that become more attractive in those types of situations. If I have my money in a bank account, it's subject to all sorts of controls on what I can do with it. Transfer out of the country your dollars or your treasury bonds. Those are US Assets. They carry a US Passport. Gold, silver, diamonds, platinum. Part of the reason they are attractive is they could have a buyer anywhere in the world. It's a similar case for Bitcoin, but basically gold is like nature's Bitcoin.

[Alex Sosale]

To hear more from Aaron, listen to tomorrow's episode of youf Money Briefing. Coming up, why countries trying to figure out how to respond to President Trump's tariffs are turning to Goldman Sachs for advice. That's after the break.

[State Farm Representative]

This episode is brought to you by State Farm. You might say all kinds of stuff when things go wrong, but these are the words you really need to remember. Like a good neighbor, State Farm is there. They've got options to fit your unique insur needs, meaning you can talk to your agent to choose the coverage you need, have coverage options to protect the things you value most, file a claim right on the State Farm mobile app, and even reach a real person when you need to talk to someone. Like a good neighbor, State Farm is there.

[Alex Sosale]

As President Trump's tariffs have gone into effect and then gone on pause, countries around the world have struggled with how to address them. And as we're exclusively reporting, some countries are turning to Goldman Sachs for advice. WSJ reporter Anna Maria Andreotis has the story. So Anna Maria, you report that South Africa, France, Saudi Arabia and Japan are some of the countries that have sought guidance from Goldman. Why from Goldman in particular?

[Doug Belkin]

A number of countries are speaking with various large US Banks that are viewed as having connectivity to the Trump administration. These talks in general are spread out across number of banks. Goldman has for a very long time been known for its connections to US Government administrations, regardless of whether it's a Democrat or Republican who is in the White House. And this time around, the same thing is at play. Countries are seeking advice. This is definitely a tumultuous time for a number of countries, whether large or small, as they try to figure out this new world order that's being put in place under the Trump administration.

[Alex Sosale]

What is Goldman telling them to do so right now?

[Doug Belkin]

Of course, for the last few weeks the topic has been on trade and tariffs and countries seeking advice on how to handle what's coming with tariffs during this 90 day pause. So one of the things that I thought was most interesting here is that the Discussions involve addressing certain issues, both domestically as well as even their international relations with certain countries as a pathway to getting lower tariffs. And so, starting from, from at least late February until this month, there have been discussions between Goldman executives and South African government officials in which, as the South African government officials have been asking about trade and improving relations with the US One piece of advice that Goldman has given, including to South Africa's president, has been to consider changing a law that requires black ownership of some companies in South Africa and changing another law that allows the government to seize property from landowners to address racial disparities. Now, one would say, what does any of this have to do with tariffs? Well, the fact is these issues have drawn the ire of Elon Musk, a South African native and very prominent in the Trump administration. He has described the land seizure law as, quote, racist. Trump himself described it as a, quote, human rights violation. There was an executive order that Trump put out against South Africa about this particular. And so the bottom line advice from Goldman to South African officials is, look, no, everything really comes down to Trump's feelings. So as you're looking for a pathway to better trade terms and lower tariffs, you might want to consider addressing these issues that both Trump and Musk have publicly basically blasted.

[Alex Sosale]

And how are these countries responding to this advice?

[Doug Belkin]

We reached out the spokesman for South Africa's president who provided us with a comment that Goldman's recommendations, quote, would not have found favor with the government which has committed itself to transformation that seeks to address the past imbalances of apartheid. It really does appear that at this moment, countries, whether it's South Africa or Japan, are largely in listening mode. Banks, including Goldman, are one type of party that they're seeking some guidance from, but they're basically trying to figure out is there something to do that would maybe lower tariffs and that these individual countries would feel comfortable making these changes.

[Alex Sosale]

That was WSJ reporter Anamaria Andreotis. Thank you, Anamaria.

[Doug Belkin]

Great to be speaking with you.

[Alex Sosale]

President Trump plans to sign an executive order today escalating his battle against democratic led states and cities that don't fully cooperate with federal immigration authorities, a key barrier to the mass deportations he's promised. The order, which was viewed by the Wall Street Journal, directs the Attorney General and the Secretary of Homeland Security to identify within a month cities and states that aren't complying with federal immigration laws, designating them as sanctuary jurisdictions. The cities and states on the list could face a cutoff in federal funding and possible criminal and civil suits if they refuse to change their laws or practices. Trump will also direct the Justice Department to pursue civil rights cases against cities or states that, in its view, favor immigrants and the country illegally over U.S. citizens. The directive comes as the administration is facing legal challenges against actions it has already taken against sanctuary cities and Power has begun to return to parts of Spain and Portugal after a major electrical outage caused widespread disruption to the Iberian Peninsula. Spain's grid operator said that more than 20% of the power capacity on the peninsula had been restored by mid evening, and the prime minister of Portugal said work is underway to restore full power to the nation. The European Union Agency for Cybersecurity said initial investigations pointed to a technical or cable issue, adding that it was monitoring the situation closely. The president of the European Council said there are no indications of any cyber attack at this point. And that's what's news for this Monday afternoon. Today's show is produced by Anthony Bansi with supervising producer Michael Cosmides. Alex I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.