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.