Therefore, Goldman Sachs estimates that every five-percentage-point increase in the United States tariff rate would lessen the S&P 500 earnings per share by about 1% to 2%. If the planned tariffs then become a reality, the bank said, it would reduce its S&P 500 earnings-per-share forecasts by roughly 2% to 3%. There is a caveat: The estimate is “not taking into account any additional impact from major financial conditions tightening or a larger-than-expected effect of policy uncertainty on corporate or consumer behavior,” the analysts explained.
