Analyst: US-UK preliminary trade agreement may not alleviate the headwind facing US stocks.

Jake Schurmeier of Harbor Capital stated that although the US-UK trade agreement has brought limited transparency improvements, the investment prospects for risk assets remain unattractive. Schurmeier estimates that with a 10% tariff becoming the bottom line of Trump's trade agreement, the actual tariff rate in the US will double to 12%, putting pressure on corporate profit margins. The potential increase in consumer prices will make it difficult for the Federal Reserve to manage inflation expectations and implement rate cuts. He said, "I tend to take a neutral stance on stocks" as higher import costs "will significantly slow down economic growth, thereby reducing profit margins".