Earnings Beat Tariffs: Why 2026 Markets Are Defying Gravity
Why Companies Are Beating Earnings Expectations Despite Tariffs in 2026 Tariff Adaptation Outweighs Costs: While tariffs have contributed 0.7–1% to inflation, firms like Amazon and Meta have mitigated the effects through strategic supply chain realignment and pricing flexibility, supporting continued performance. record revenues and margins. Sector-Specific Wins and Losses : Tech and consumer goods sectors show robust growth (e.g., Meta's 24% revenue increase), while retail and manufacturing face headwinds but still exceed forecasts in many cases; evidence leans toward minimal long-term drag if adaptations continue. Economic Resilience Amid Uncertainty: Global growth is expected to reach 3.3% in 2026, the IMF and World Bank say, with AI and fiscal support helping balance tariff impacts, even as escalation poses ongoing risks. Fintech Regulations Add Complexity : New U.S. rules on stablecoins and open banking may boost innovation but increase compliance costs, potentially a...
