S&P 500 Will Sink as Trump’s Tariffs Hit Earnings, Goldman’s Kostin Warns
- Strategist sees index fair value dropping 5% on lower profits
- Says latest tariffs to crimp earnings by 2-3% if sustained
Global stock markets slumped Monday on worries that the latest tariff moves could result in a full-blown trade war.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
There’s a risk of a 5% slump in US stocks over the coming months as the latest round of tariffs by the Trump administration crimp earnings forecasts, according to Goldman Sachs Group Inc. strategists.
US President Donald Trump has announced levies of 25% on imports from Mexico and Canada, which will take effect on Tuesday, barring a last-minute deal. China is due to be hit with a 10% levy, while Trump also reiterated a warning to the European Union that tariffs “will definitely happen.”