NEW
YORK, Jan. 29, 2025 /PRNewswire/ -- A new
report from S&P Global Market Intelligence reveals how
alternative data and artificial intelligence (AI) tools can help
businesses quantify the impact of U.S. tariffs at both the company
and product levels. The findings show that companies with
significant international operations and high U.S. sales are
especially vulnerable. Notably, equity investors in these firms saw
stock prices underperform peers by 3.9%, from 2017 to 2019. In
contrast, companies with a higher U.S. headcount and lower U.S.
revenue earned an 11% equity premium over peers.
Titled "Three Tools for Trump Tariffs 2.0," the report utilizes
alternative data and advanced AI techniques, including headcount
data sourced from social media job profiles, business relationships
estimated using a patented data science algorithm, and natural
language processing from the company's recently acquired
ProntoNLP.
"Combining unique alternative data and AI allows us to quantify
and monitor impacts in near real time, down to the company and
product level," said Daniel
Sandberg, managing director at S&P Global Market
Intelligence. "In today's complex and unpredictable landscape,
it's crucial for stakeholders to effectively forecast and nowcast
the implications of tariffs on their strategies."
Key highlights from the report include:
- During the last Trump Administration, tariff-targeted firms
experienced a 17% change in their overall supply chain strategy
from 2017 to 2019, which is 5 percentage points higher than
non-target peers. Some tariff-targeted industries faced even larger
disruptions, such as Automobiles & Components at 37%.
- Analysis of earnings call transcripts processed with a bespoke
large language model showed that executives emphasized supplier
diversification in response to tariff-related questions, with 57%
of responses highlighting this strategy in Q3 2024, up 50.7% since
the start of the post-pandemic period.
- Despite a significant increase in tariff discussions in Q3
2024, the net negativity associated with these mentions remains
muted, having declined sharply from over 420 during the first Trump
Administration to below 20 since Q3 2021. However, with tariff
mentions recently spiking, stakeholders can watch net negativity as
a bellwether.
To request a copy of the full report or speak with our experts,
please contact press.mi@spglobal.com.
S&P Global Market Intelligence's opinions, quotes, and
credit-related and other analyses are statements of opinion as of
the date they are expressed and not statements of fact or
recommendation to purchase, hold, or sell any securities or to make
any investment decisions, and do not address the suitability of any
security.
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we understand the
importance of accurate, deep and insightful information. Our team
of experts delivers unrivaled insights and leading data and
technology solutions, partnering with customers to expand their
perspective, operate with confidence, and make decisions with
conviction.
S&P Global Market Intelligence is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information, visit
www.spglobal.com/marketintelligence.
Media Contact
Amanda
Oey
S&P Global Market Intelligence
P. +1 212-438-1904
E. amanda.oey@spglobal.com or press.mi@spglobal.com
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SOURCE S&P Global Market Intelligence
