Trump's tariff policy raises concerns, Goldman Sachs CEO reassures: risk of US economic downturn is very low.

Goldman Sachs CEO David Solomon said that despite global trade policy uncertainties, the possibility of the U.S. economy falling into a recession is "very low." Solomon, speaking at The Australian Financial Review Business Summit in Sydney on Tuesday, stated that President Trump is taking action based on the view of trade imbalances. "He's very specific about how he executes, and that's one of the uncertainties that I talk about," Solomon said. Trump said on Monday that he will continue to impose new tariffs on Canada and Mexico, further exacerbating volatility in the stock and bond markets as investors weigh the prospect of deteriorating global economic growth. Meanwhile, the White House announced that Trump has signed an order to double tariffs on China to 20%. Blackstone CEO Steve Schwarzman also stated at the same conference earlier on Tuesday that the company's quarterly survey of 250 companies it owns shows that the U.S. economy is doing well, with none of the surveyed executives expecting a recession this year. Solomon also noted that investors should closely monitor how the credit cycle affects lending institutions and changes their behavior. "We have not had a normal credit cycle for over a decade," he said. "Excessive behaviors are building up, and while they may not cause problems, it's important to look ahead and understand the interplay."