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US markets face Trump tariff risks, Citi economist warns
Robert Sockin, Global Economist at Citi believes India's economic strength is likely to attract increased investor interest over the medium term.
Robert Sockin, Citi's Global Economist, warns that the US equity markets could face challenges if extensive tariffs are introduced.
While Citi's equity strategists project a potential bullish scenario with the S&P 500 reaching 6,100 by year-end, the imposition of extensive tariffs could disrupt this trajectory.
Sockin highlighted how past tariff hikes created substantial headwinds for companies and their stock prices.
US equities have benefitted from a robust economic cycle driven by strong consumer spending, which is now expanding from services to goods.
Also Read: Dollar rises as Donald Trump threatens higher tariffs
This shift, Sockin explained, aligns with Citi's preference for growth cyclicals in the current market environment. However, the situation remains complex, and further market growth will depend on economic and policy developments.
The warning comes in the wake of President-elect Donald Trump’s announcement of new 10% tariffs on Chinese goods and 25% on imports from Mexico and Canada, citing migration and drug trafficking issues.
On his Truth Social platform, Trump criticised China for failing to act against fentanyl (drug) traffickers and vowed to address these concerns with additional trade measures.
Also Read: Donald Trump vows tariffs on China, Mexico, Canada over border
India, according to Sockin, is a complex yet promising market.
He highlighted the country’s strong economic growth this year and Citi's optimism for continued solid performance in the next year.
Despite near-term challenges, he is confident of India’s medium-term prospects, and believes its economic strength will likely attract increased investor interest.
For more details, watch the accompanying video
Catch all the latest updates from the stock market here
While Citi's equity strategists project a potential bullish scenario with the S&P 500 reaching 6,100 by year-end, the imposition of extensive tariffs could disrupt this trajectory.
Sockin highlighted how past tariff hikes created substantial headwinds for companies and their stock prices.
US equities have benefitted from a robust economic cycle driven by strong consumer spending, which is now expanding from services to goods.
Also Read: Dollar rises as Donald Trump threatens higher tariffs
This shift, Sockin explained, aligns with Citi's preference for growth cyclicals in the current market environment. However, the situation remains complex, and further market growth will depend on economic and policy developments.
The warning comes in the wake of President-elect Donald Trump’s announcement of new 10% tariffs on Chinese goods and 25% on imports from Mexico and Canada, citing migration and drug trafficking issues.
On his Truth Social platform, Trump criticised China for failing to act against fentanyl (drug) traffickers and vowed to address these concerns with additional trade measures.
Also Read: Donald Trump vows tariffs on China, Mexico, Canada over border
India, according to Sockin, is a complex yet promising market.
He highlighted the country’s strong economic growth this year and Citi's optimism for continued solid performance in the next year.
Despite near-term challenges, he is confident of India’s medium-term prospects, and believes its economic strength will likely attract increased investor interest.
For more details, watch the accompanying video
Catch all the latest updates from the stock market here
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