(ZEROHEDGE) – One month ago, when previewing the potential fallout from an "all out" global trade war, which for simplicity's sake many have equated with an across-the-board 10 percent tariff on all U.S. imports and exports, we presented an analysis from Barclays, according to which the hit to 2018 EPS for S&P 500 companies would be ~11 percent and, thus, "completely offset the positive fiscal stimulus from tax reform."
Furthermore, the impact on exporters which would be directly affected, would be 5 percent, while that on U.S. companies that import finished goods or inputs would be higher, at roughly 6 percent. This, to Barclays, highlights the unintended consequences of imposing tariffs given the global nature of current supply chains.
Since then, trade tensions have only escalated at an alarming pace. In context, the U.S. has already imposed tariffs on $79 billion of US imports and proposed tariffs on an additional $702 billion, with the combined $781 billion in targeted goods representing 27 percent of total U.S. imports.
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