The stock had risen 42% this year as the warehouse retailer benefited from strong consumer spending.
The World Trade Organization rules the U.S. can retaliate for illegal subsidies to Airbus, possibly escalating trade tensions.
With income outpacing expenditures, consumers may have "a good amount of cushion to sustain spending if or as the economy slows."
Another cut in December is "contingent upon an escalation in trade tensions, further weakness in global growth, and increased geopolitical tensions."
China said it was adding tariffs on billions of products while President Trump said U.S. companies should seek ‘an alternative’ to China.
Analysts warn of a hit to earnings and iPhone demand if President Trump follows through with a 10% tariff on Chinese goods.
Several government measures designed in part to bring manufacturing jobs back to the United States are having the opposite effect so far.
The country’s economy experienced a significant slowdown as it faces trade tensions with the United States.
As part of the long running Airbus-Boeing dispute, the U.S. Trade Representative is considering tariffs on 89 additional items.
“The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence," the Conference Board says.
Those surveyed by KPMG have employed various strategies to reduce the added cost.
The effects of supply and demand dictate that in many cases, tariffs actually result in lower prices for consumers.
