Despite commercial uncertainty, the bank remains optimistic about the actions, providing for S&P 500 to reach 6,600 at the end of the year
UBS analysts minimized concerns about US generalized commercial tariffs after President Donald Trump’s (Republican) guideline to evaluate reciprocal import taxes.
Although the measure signals possible commercial tensions, UBS does not estimate “Generalized and sustained universal tariffs“, Waiting, instead, a more targeted and negotiating approach.
Markets recovered with the ad, with S&P 500 rising 1% and 10-year-old treasure income falling 9 base points, as investors were comfortable with the lack of immediate action.
The UBS noted that the directive instructs US commercial authorities to develop specific fares for each country, considering factors such as value -added taxes, subsidies and taxes on digital services.
However, “There is no schedule set for implementation“Which, according to UBS, suggests that this could be more a trading tactic than a firm commitment.
Although the perspective of tariffs on the main sectors, such as auto, semiconductors and pharmacist, increases uncertainty, UBS stressed that “Threats lead to negotiation“.
The bank notes that the European Union has already reacted preventively, offering to reduce tariffs on US cars to avoid climbing.
Similarly, after a meeting with India Prime Minister, UBS said Trump has announced efforts to reduce Indian highs about American products in exchange for energy and defense purchases.
The bank warns that aggressive rates could trigger retaliation measures by US business partners, leading to a growing cycle of commercial restrictions.
However, he believes that the most likely result is “selective tariffs“With the markets, carefully observing any change towards the total application.
Despite commercial uncertainty, UBS remains optimistic about actions, providing for S&P 500 to reach 6,600 at the end of the year.
The company also highlights gold, high -grade titles and certain hedge background strategies as effective protections against trade volatility. “We expect market resilience, particularly in US stocks, as economic growth remains intact“Said the UBS.
