There's a lot of impact of tariffs still to come, says Wolfe Research's Tobin Marcus

Market Reaction to Tariffs - The market has largely been desensitized to tariff headlines, with investors not panicking and selling based on reports alone [2] - The tech and AI narrative driving the market higher is not the most tariff-exposed sector, contributing to the market's resilience [3] - The market's reaction is, to some extent, signaling to the president the level of tariffs the markets and economy can sustain [11] - The market's current tolerance encourages further tariff increases [12] Tariff Impact and Future Expectations - Tariffs are expected to show up in economic data and margins, potentially impacting the market [3] - The impact of already implemented tariffs is still to come, as suppliers and retailers make decisions about passing on costs [6] - Tariffs are generally increasing, with baseline tariffs potentially rising from 10% to 15%, and settling around 20% for many Asian countries [8] - Sectoral tariffs, particularly in pharma and semis, represent a large category of goods with an unknown impact [9] - Sophisticated institutional investors remain concerned, anticipating that tariff costs will eventually affect margins or prices [10] Trade Deals and Tariff Strategy - Trade deals are reducing tariffs relative to the initial threats, but still increasing tariffs compared to previous rates [8] - The current phase is a ramp-up in tariffs, with the ultimate outcome yet to be determined [13]