PANews reported on February 3rd that according to Jinshi, Goldman Sachs strategists said that the US stock market is likely to fall 5% in the coming months as the latest round of tariffs from the Trump administration affects earnings forecasts. "These statements shocked many investors, who expected tariffs to be imposed only if trade negotiations failed," Goldman Sachs strategist David Kostin wrote in a report. "Our economists see an uncertain outlook but believe that tariffs on Canada and Mexico are likely to be temporary." Kostin said that if sustained, the latest tariffs will reduce his earnings forecasts for S&P 500 companies by about 2% to 3%, which does not take into account the impact of further tightening financial conditions or changes in consumer and corporate behavior. He also warned that the fair value of the S&P 500 index could fall by about 5% in the short term as both earnings and stock valuations are hit.