Tariffs is the election-relation risk to US stocks: Goldman Sachs

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Tariffs is the election-relation risk to US stocks: Goldman Sachs

Goldman Sachs strategists have highlighted the potential toll of tariffs on American companies doing business overseas as the US election campaign gains momentum. According to the investment bank giant, tariffs could significantly impact the performance of stocks with high international revenue exposure.

This concern extends to companies that rely heavily on international suppliers, which could face additional challenges from potential tariffs. “Although there is substantial uncertainty in the size and scope, tariff increases appear likely in the event of a Trump victory,” the note added. In 2018, when the US announced tariffs and other trade barriers against China under the Trump administration, Goldman Sachs observed that its domestic sales basket outperformed its international sales basket by 9 percentage points.

 

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