President Donald Trump would have been better served by targeted tariffs on steel and aluminum instead of the broad, "draconian" taxes he announced last week, Goldman Sachs said Tuesday.
Goldman's global head of commodities research explained that by failing to exempt certain trading allies, the U.S. has likely created a "two-tier" metal market.
"Not all metal is created equally," wrote Goldman's Jeffrey Currie. "U.S. allies produce many of the value-added steels that current U.S. capacity cannot fully replace without substantial increase in investment. … As a result, the U.S. will end up simply paying the tariffs on the higher quality imported metal from U.S. allies even if the amount was at or under the quota."