1. WTO predicts global trade will decline by 0.2% due to tariffs. 2. US-China trade may plunge 81% to 91%, prompting economic concerns. 3. Trade policy uncertainty threatens business investment and economic growth. 4. Global GDP growth forecast reduced from 2.8% to 2.2% for 2025. 5. Services trade will decline indirectly due to weak goods trade.
The significant decline in global trade and economic uncertainty can adversely affect S&P 500 companies reliant on international trade, similar to past reactions during tariff escalations which led to market declines.
The implications of declining trade and economic growth forecasts are crucial for the S&P 500, suggesting that major companies could face reduced earnings and investor confidence.
The persistent uncertainty and potential for continued trade policy changes suggest an extended impact on market confidence, evidenced in past trade conflict scenarios leading to prolonged economic strife.