How the Trump Tariffs Could Affect Your Stock Portfolio | Global News Avenue

On Monday, due to the market’s reaction to President Trump’s decision to impose tariffs on the three largest trading partners in the United States, the stock decline caused concerns that the trade war may cause consumers and the company’s financial status.

Trump ordered to strengthen on the weekend 25 % tariff In Canada and Mexico imported goods, 10 % of Chinese goods are levied. Canada’s oil and energy imports have won trucks and will pay 10 % of import taxes.

On Monday morning, Trump announced that Mexico tariffs would be Delay for one month Mexican President Claudia Sheinbaum agreed to deploy the military to the US -Mexico border. After midnight on Tuesday morning, the tariffs between Canada and China are scheduled to take effect.

After the tariff delay in Mexican products, US stocks have decreased from earlier lows In recent transactions, it is still firm in negative territory.

Goldman Sach

Goldman Sachs analysts model the tariff how to affect the US market, and it is estimated that the expenses can reduce the fair value of the Standard 500 Index by about 5 %.

They explained that tariffs either reduce the profit margin of the United States by increasing investment costs, or if higher costs are passed to consumers, sales are slow. “We estimate that every 5PP increase in US tariff rate will reduce the profit of the Standard 500 Index by about 1-2 %. As a result, if it continues, the tariff announced on this weekend will make our Standard S & P 500 index prediction Reduce about 2-3 %, “an analyst wrote in a report released on Sunday.

In addition, the expected tariff will be supported US dollar strengthEssence International sales accounted for about 28 % of the S & P 500 index revenue, while one dollar sales accounted for sales value. Analysts pointed out that, given that Canada and Mexico account for 2 % of the S & P 500 index sales, the impact of the US dollar on returns may be limited.

Tariffs have expanded economic and political uncertainty, and threatened to weaken Wall Street’s demand for risks. According to Gao Sheng, the U.S. economic policy uncertainty index jumped to 502 last Friday, the highest level since March 2020. From a historical point of view, this uncertain level has been converted into 3 % of the S & P 500 Index Positive P/E ratioEssence

Because tariffs may cause inflation and weigh economic growth, they are right Ministry of Finance’s incomeEspecially on long -term bonds that have the greatest impact on stocks, it is expected to be the smallest.

The person in charge of the former JPM strategy said that the “probability” of the correction of the stock

Other analysts predict the consequences of stocks. Bank of America analysts estimate on Monday that the trade war between the United States and its largest trading partners may be transformed into a total income of 8 % of the S & P 500 Index.

Marko Kolanovic, the person in charge of JP Morgan’s equity strategy, said that political turmoil is only one of the risks that may reduce stocks. In a episode he was in the first episode of Bloomberg, the strange Bloomberg recorded episode recorded by Trump’s tariff last week stated that the index should retreat in the 5,000s of this year. He warned that the index could even retreat from the current level of more than 1,000, which will put the index at correctEssence He said: “I think there are some possibilities.”

On Sunday, Koravic introduced Trump’s tariffs and its impact on the market. “The trade war has entered the environment of 2018 (high volatility, low valuation). Those who pointed out that Trump cares about the stock market should remember that even if he fell by 5 % at that time, he dropped by about 5 % until 5 % of the time fell by about 5 %. . Now, the tolerance of the decline may be higher, and the market is high. “He wrote in X post.