Goldman Sachs traders warn that the tariff impact is far worse than expected, with the tax rate forecast soaring from 15% to 20%.After Trump announced the latest tariff policy on Wednesday, Goldman Sachs trader John Flood candidly described the panic in the market in an after-hours report titled &#34;Worse Than Expected&#34;:<blockquote>“We are currently witnessing a frenzy of long positions selling tech stocks and hedge funds aggressively shorting macro products.”</blockquote>This Goldman Sachs trader reminded clients that asset management companies and hedge funds have been continuously reducing risk exposure over the past two weeks, but the actual situation is more severe than anticipated.According to Goldman Sachs' latest assessment, when all factors are taken into account, the actual &#34;equivalent tariff rate&#34; in the U.S. will be close to 20%, far exceeding Goldman Sachs' previous benchmark assumption of 15%.Before Trump announced the tariff policy this week, Goldman Sachs had already raised the probability of the U.S. entering a recession from 20% to 35%, while also expecting an average equivalent tariff of 15% on all U.S. trading partners.There are also views suggesting that the Mag7 may be more susceptible to global growth risks than other S&amp;P stocks, meaning that market leaders may no longer be able to support overall market performance.Flood concluded:<blockquote>“The situation is dire. This will hit GDP growth, push up inflation rates, and keep the U.S. stock market under pressure. Uncertainty has not been contained. Based on what we currently understand, tomorrow the U.S. stock market will clearly face a very challenging day (feeling that the S&amp;P 500 index will drop by about 4%).”</blockquote>

Goldman Sachs trader John Flood stated that when all factors are taken into account, the actual "equivalent tariff rate" in the United States will be close to 20%, significantly higher than Goldman Sachs' previous benchmark assumption of 15%. "This will hinder GDP growth, raise inflation rates, and continue to put pressure on the U.S. stock market."

- Goldman Sachs trader John Flood warned that the impact of tariffs is far worse than expected, with rates rising from 15% to nearly 20%.  
- Following Trump's announcement of new tariff policies, there has been significant panic in the market, leading to aggressive selling of tech stocks and shorting of macro products by hedge funds.  
- Flood concluded that the situation will negatively affect GDP growth, increase inflation, and put continued pressure on the U.S. stock market, predicting a challenging day ahead for the S&P 500.