Wall Street expects US stock market to decline following Trump's imposition of reciprocal tariffs

US stocks have been falling in recent days due to US President Donald Trump's plans to impose 25% tariffs on automobile imports. Now investors are also trying to assess the scope of reciprocal duties, which are set to come into effect after April 2, and to understand whether they will result in a further escalation of trade tensions, Yahoo Finance says. 

Besides, the market is getting more concerned that worse-than-expected tariffs could slow down US economic growth. The current US administration's trade policy has already prompted several Wall Street companies to lower their year-end targets for the S&P 500.

Barclays expects the index to reach 5,900 at the end of 2025, down from the previous forecast of 6,600. According to the company’s estimates, the reciprocal duties will be 15%. If the eventual tariff rate lands higher, Barclays sees greater risks of US stocks declining and the country’s economy facing recession. 

Goldman Sachs’ poll shows investors expect a 9% reciprocal tariff rate. However, it may be twice as high as what the market assumes, the bank’s economists believe.