Goldman Sachs economists estimate that if the latest trade tariffs announced by U.S. President Donald Trump after assuming office in his second term are sustained, they could take a significant chunk out of Corporate America's bottom line.

S&P 500 earnings per share could decline 1%-2% for each five percentage-point increase in the US tariff rate, Goldman Sachs estimated.

Traders are shocked that a president who said he would place tariffs on countries with whom the U.S. has notable trade deficits has put tariffs on some of those countries. After Canada, Mexico and China, the European Union may be next.