Tariff concerns remain in vogue on Wall Street when dissecting the market volatility fit over the past month, but the issue seems to be carrying less weight among corporate executives.
Commentary that has accompanied third-quarter profit reports has taken less of a focus on the back-and-forth trade levies the U.S. and its trading partners, primarily China, have implemented in recent months.
President Donald Trump has railed against the burgeoning U.S. trade deficit, and Wall Street strategists have been expressing concern that the tariff battles could endanger economic growth and hit profit margins.
But with earnings season nearly completed, about one-third of the companies reporting so far have used the word "tariffs" during their conference calls in any context, with the number citing a negative impact only a fraction of that. FactSet data shows total tariff mentions came from 138 of the S&P 500 companies, down from the 157 that had used the term following second-quarter reports.
One expert reports only about 9% of the companies in the index noted a negative impact. At a sector level, industrials most frequently mentioned the issue, followed by tech, consumer discretionary and materials. Seven of the index's 11 sectors saw a quarterly decline in the number of companies that used the term, while only two showed an increase.
Most firms citing tariff issues have been saying they are offsetting them with higher prices or by changing suppliers.
