Before the U-turn on tariffs, Goldman Sachs said “there is a substantial probability that the tariffs on Canada and Mexico will be temporary.”

S&P 500 earnings per share could decline 1%-2% for each five percentage-point increase in the US tariff rate, Goldman Sachs estimated.

Goldman Sachs economists estimate that if the latest trade tariffs announced by U.S. President Donald Trump after assuming office in his second term are sustained, they could take a significant chunk out of Corporate America's bottom line.

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.