Goldman Sachs Predicts 0.6% Price Boost From Canada, Mexico Tariffs

Goldman Sachs Research has forecasted a 0.6% price boost for U.S. consumers due to the recently implemented tariffs on goods from Canada and Mexico. The investment bank's analysts believe that the 25% tariffs on Mexican and Canadian goods, as well as the 10% tariff on Canadian energy, will lead to higher prices for U.S. consumers. This is because the tariffs will increase the cost of goods for U.S. importers, who will then try to pass along the higher costs to consumers through higher prices. The analysts also noted that the tariffs could drive up the value of the dollar, which could further weigh on the earnings of S&P 500 companies, which derive 28% of revenues outside the US. However, the analysts also acknowledged that the impact of the tariffs on the U.S. economy could be more severe than the forecasted impact on S&P 500 EPS.