After Trump's tariffs take effect, Wall Street firms warn that the S&P 500 index may pull back.

On August 7, Trump's new reciprocal tariffs took effect today at 12 PM. Wall Street institutions have sounded the alarm. Morgan Stanley, Deutsche Bank, and Evercore ISI have all warned that the S&P 500 index may pull back. This warning comes amid growing concerns about the U.S. economy, as last week's data showed an increase in inflation, while employment growth and consumer spending both showed signs of slowing. The latest polls show that 62% of voters oppose Trump's tariff policy, 58% oppose his tax reform and spending bill, and 55% are dissatisfied with his economic governance. There are also questions about the sustainability of Trump's plans, as his use of emergency powers to impose tariffs on specific countries faces court challenges. He is now relying on more legally grounded authority to impose tariffs on specific industries (such as automotive and metals). Duke University School of Law trade expert Professor Tim Meyer pointed out that the government is trying to create the illusion that "the tariff cycle is about to end," but "its legal foundation is seriously flawed." Trump insists that his measures will usher in a new golden era of the economy and dismissed data that contradicts his narrative, firing the head of the statistical agency that released the latest employment data. (Jin10)