Citi analysts warn Trump’s tariffs could impact S&P 500 earnings

ICYMI, in a note Citi analysts cautioned that Trump’s proposed tariffs could lead to a decline in S&P 500 earnings by a few percentage points.

• They noted that the market has not yet fully accounted for this risk, particularly with the new tariffs targeting China, Canada, and Mexico.
• Industries with substantial trade exposure, such as Canada’s energy exports, are likely to feel the impact.
• These tariffs could lower S&P 500 earnings in 2025 and significantly affect gross margins.
• However, previous instances of tariff relief suggest potential flexibility, and market attention is now transitioning from election concerns to uncertainty surrounding policies.

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The ‘Trump tariff’ concerns seem to be being rapidly priced by the market … shrugged off even! Still, a wobble today:

• A down day for the major indices ahead of the Thanksgiving day holiday

This article was written by Eamonn Sheridan at www.forexlive.com.