Despite ongoing trade tensions between the U.S. and China, expert quotes the prevailing consensus that is anticipating minimal impact on future economic growth and corporate earnings.
What Happened: This comes after the U.S. and China agreed to hold high-level trade talks in Switzerland this weekend, their first major meeting since President Donald Trump initiated the trade war. The meeting comes amid growing U.S. market concerns over tariff impacts.
According to a recent analysis shared by market strategist Bob Elliott, the current market sentiment is discounting the potential effect of the existing trade policies.
Elliott highlighted that equity analysts and economists appear confident that the “admin’s policies” will not impede earnings growth in the coming years, with earnings projections for 2025 mirroring those of 2024 and even accelerating into 2026.
He underscores the relatively high 12-month forward earnings estimates, which remain considerably above current-year figures, suggesting a lack of widespread concern about long-term repercussions.
While the economic growth forecasts for 2025 have seen some downward revisions, the implied growth for the remainder of the year remains …