Ahead of new US tariffs against China, UBS AG warns about weakening resistance of American stocks to steps of such type, Bloomberg reports.

Strategists from UBS assume that US stocks may show the biggest drop since April, if President Trump implements all his threats. S&P 500 Index may fall by 5%, if the US imposes 25% duty on $200 billion Chinese goods.

Unlike Chinese market, American equities withstood threats of trade war arising in recent months. In August S&P 500 showed fifth month of growth and reached another record level. Shanghai Composite continues sliding.

Goldman Sachs and Citigroup already warned investors about coming threat this week.

UBS thinks that situation may get better in October as earnings reports season starts and midterm elections approach. Another factor that may save American stocks is skipping another interest rates hike by US Fed.