David Solomon, the CEO of Goldman Sachs Group, publicly called on the Trump administration for clearer policy guidance on Wednesday.

In an interview on Fox Business Channel, the leader of this Wall Street giant stated, "The current policy uncertainty has increased, inhibiting some business activities. The clearer the policy agenda, the more it can promote capital investment and economic growth."

This statement coincided with Trump's speech to business leaders at the Washington Business Roundtable on Tuesday. In light of the global market turmoil caused by Trump's erratic tariff policies, Solomon pointed out, "The headwinds from tariffs are hindering merger and acquisition trade activities, and business leaders are eager to understand the direction of policies." Despite the uncertainty, he still expects an uptick in merger and capital market activities this year and believes that the promised regulatory easing could bring Bullish effects.

Trump's "roller-coaster" tariff threats.

On Tuesday, it became a microcosm of Trump's trade policy for his second term: in the morning, Trump threatened to double tariffs on Canadian Steel and Aluminum to 50%, and in the afternoon he retracted his threat due to Ontario's withdrawal of the electrical surcharge plan. This flip-flopping style further impacted a market already under pressure, with the S&P 500 Index dropping 3.5% this week, and US bonds falling simultaneously.

"When negotiation partners are uncooperative, the greatest dealmaker in history must show a tough stance," defended Commerce Secretary Howard Lutnick. Although both the US and Canada announced they would meet in Washington on Thursday to pause the conflict, the 25% steel and aluminum tariffs that took effect at midnight still hang like the Sword of Damocles.

As Trump targets his key trading partners with tariff Weapons, anxiety in the business community continues to escalate. Canada, as the main supplier of industrial aluminum to the USA, bears the brunt, with US-owned auto factories within its borders being the first affected. Trump warned that the additional tariffs would "permanently close Canada's automotive manufacturing industry," but industry insiders countered that the most impacted auto factories in Ontario mostly belong to American car companies.

Despite Trump's assertion that the "USA economy is about to take off," data reveals hidden concerns: the unemployment rate slightly rose to 4.1% last month, consumer spending and confidence weakened, and the small business uncertainty index soared. The federal agency streamlining plan promoted by Musk adds more variables to the job market.

The risk of an "atypical recession" is becoming apparent.

Economists generally believe that there is no imminent recession risk in the USA; however, warning signals are continuously accumulating: retaliatory tariffs have pushed up consumer goods prices, and additional fees for importing Canadian Electrical Utilities in states like New York have increased household burdens; after the implementation of the 25% Steel and Aluminum tariffs, targeted tariffs on the Autos, Semiconductors, and Wood industries will follow next month; Trump's proclaimed "reciprocal tariffs" could trigger a chain reaction in the Global trade system.

Marc Short, former chief of staff to Pence, pointed out: "Unlike the first administration, the market is beginning to realize this is not a negotiation strategy." As Treasury Secretary Scott Bessent stated, this economic restructuring will inevitably come with growing pains.

Amid the gloom, Trump has released some Bullish signals to business leaders: prioritizing the acceleration of approvals in Eco-friendly Concept and other fields, announcing significant Electrical Utilities projects soon, and suggesting that companies setting up factories in the USA may receive tax breaks.

However, these promises appear to be a drop in the bucket amidst the tariff storm. As Solomon stated, when policy uncertainty becomes the biggest risk, any Bullish signal is unlikely to truly boost business confidence. In the election year of 2024, the business community has to learn to survive amid Trump's "deal-making art" and market realities.