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Trump economic adviser expects "heck of a lot" of earnings downgrades

Kevin Hassett, the chairman of President Trump's Council of Economic Affairs, told CNN on Thursday that a "heck of a lot of companies" that do business in China will see a hit to their earnings until the U.S. and China negotiate a trade deal.

Why it matters: On Wednesday, Apple slashed its revenue expectations due in part to a slowing Chinese economy, which CEO Tim Cook said was exacerbated by the ongoing trade war. In recent weeks, the White House has started to publicly acknowledge the damage tariffs could do to the U.S. economy. Trump told a Cabinet meeting this week that markets will improve "once we settle trade issues" and Hassett told CNN that corporations' "sales will recover" with a China trade deal.

Go deeper: The Chinese role in Apple's seismic iPhone warning