Before the U-turn on tariffs, Goldman Sachs said “there is a substantial probability that the tariffs on Canada and Mexico will be temporary.”

S&P 500 earnings per share could decline 1%-2% for each five percentage-point increase in the US tariff rate, Goldman Sachs estimated.

Goldman Sachs economists estimate that if the latest trade tariffs announced by U.S. President Donald Trump after assuming office in his second term are sustained, they could take a significant chunk out of Corporate America's bottom line.

Donald Trump is the first president to use the International Emergency Economic Powers Act to impose tariffs, teeing up likely legal battles that will test his executive authority.

What to know as President Donald Trump imposes steep new tariffs on imports from Canada, Mexico and China, prompting retaliation and countermeasures.