US equity chief at Goldman Sachs warns of consequences of tariffs

DTS news agency US equity chief at Goldman Sachs warns of consequences of tariffs 14 hours • 1 minute reading time New York (dts news agency) - According to Goldman Sachs, import tariffs imposed by the administration of US President Donald Trump could end the rally on the stock markets. "Tariffs are a risk to our stock market forecast," said David Kostin, chief strategist for US equities at the bank, to the business magazine Capital. So far, he has forecast that the US stock index S&P 500 will end the year at 6,500 points, which would correspond to an increase of eight percent compared to the current level. The exact effect of tariffs on the US economy and thus the stock market is difficult to predict, according to Kostin. "Import tariffs could increase costs for companies," said Kostin. If a company then decides against price increases, i.e. if it absorbs part of the higher costs itself or cannot absorb them in any other way, this would affect its margins and profit growth. Conversely, companies could also raise their prices. "If companies pass the tariffs on to consumers, this has an inflationary effect." Higher inflation could lead to rising interest rates and thus falling share prices. However, with a rise to 6,500 points, the rally on the stock market would weaken. "There are still the Magnificent Seven, the economy's optimism for Donald Trump - and also the development of artificial intelligence," says Kostin. "But in my opinion, the high annual returns of 20 percent and more of the previous two years can no longer be achieved in 2025."