The US earnings season is underway and the impact of the US-China trade war is clearly visible in companies’ earnings reports across industries. Trade teams of both countries are set to meet for in-person discussions over the next two days in Shanghai, and markets are hoping for signs of a possible resolution of the trade dispute.

Nealry one-third of conference calls by S&P companies while sharing their earnings reports mentioned tariffs as a possible factor impacting their quarterly performance. According to FactSet, 71 companies discussed the impact of tariffs on their earnings in Q2, up from 50 companies during Q1 2019.

According to analysts, the trade war has failed to have a lesser than expected impact on export-driven companies’ earnings. In comparison, fewer companies catering to domestic markets have beaten analyst expectations when publishing their earnings reports.

Over the past year that US and China have been embroiled in the trade conflict, Wall Street has been quick to react to Trump’s tweets on trade issues, further signifying the importance of this issue as far as stock markets are concerned. There have been no solid developments so far ever since negotiations resumed again after the G20 summit.