The US stock market has long been fretting about escalations in tensions between the US and its major trading partners, worried that tariffs and other protectionist policies could develop into a full-blown trade war. And while this has been a primary driver of trading for months, investors may still not fully appreciate the impact the Trump administration’s policies could have on stocks.

According to Goldman Sachs, protectionist policies — which have “recently accelerated” in intensity — will weigh on profitability in two ways: with an adverse impact on revenue, and an adverse effect on corporate margins.