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By Johann M Cherian and Pranav Kashyap

Feb 3 (Reuters) - The Trump administration had postponed the implementation of the new levies on Mexico and Canada, the United States' largest trade partners for one month. But the reprieve ends on Tuesday.

U.S. Commerce Secretary Howard Lutnick confirmed the tariffs on Canada and Mexico are set to take effect on Tuesday. However, President Donald Trump will decide whether to maintain the proposed 25% tariff rate.

Canada mainly exports crude oil and other energy products along with cars and car parts as part of the North American auto manufacturing chain. Mexico exports various goods in the industrial and auto sectors.

Here is what top brokerages have to say on the potential fallout of the tariffs on the U.S. economy, businesses and financial markets.

COMPANIES AND PROFITS

- Goldman Sachs expects the announcements to reduce its S&P 500 earnings per share $(EPS)$ forecasts by about 2% to 3%. It said every 5 percentage point increase in U.S. tariff rates could potentially decrease the EPS by around 1% to 2%.

- Tariffs against Canada, Mexico and China could amount to a 2.8% drag on the S&P 500's .SPX profit, if fully enacted, with the materials and discretionary sector most at risk, Barclays analysts said last month.

- A small import price shock in a narrow tariff scenario is likely to result in a 50 basis points compression in S&P 500 gross margin, while broader tariffs could see margins shrink by 250 bps, Citigroup said, before the announcement.

- Profit margins of exporters could be hit, according to BlackRock, if inflation causes elevated interest rates and sets off a dollar rally to its 2022 peak.

AUTOMAKERS

- The U.S. auto sector could face an additional cost of up to $40 billion annually, which translates to an average increase of about 7% per car, according to Daniel Roeska, a senior analyst at Bernstein.

- Canada and Mexico account for nearly one-fifth of the value of U.S. vehicle consumption and production, Goldman Sachs said before the tariffs were announced.

- The surcharges imposed on Mexican imports could prove to be a problem for General Motors, while production could shift to the U.S., RBC analysts said in a note dated January 28.

STEELMAKERS

- European steelmakers with U.S. production supply chains integrated with Mexico, Canada and Europe will be directly impacted, J.P. Morgan said.

- Analysts flag ArcelorMittal MT.LU, Finnish peer Outokumpu OUT1V.HE as exposed to Mexican and Canadian steel, while Acerinox ACX.MC and SSAB SSABa.ST have high U.S.-based production.

- Canada accounts for 70% of U.S. aluminum imports, J.P. Morgan analysts said in a Feb. 3 note.

SPIRITS

- Around 85% of consolidated sales of Corona beer maker Constellation Brands STZ.N comes from imported Mexican beer, according to J.P. Morgan. Piper Sandler sees a potential impact of $3 to $3.75 per share hit to fiscal 2026 earnings of Constellation if the tariffs last a full fiscal year.

OTHERS

- Tariffs on Mexico could hurt appliance distributors such as Whirlpool WHR.N, BofA Global Research said on January 29.

- Builders FirstSource BLDR.N could benefit in the short-term from tariffs on Canadian lumber imports, but that would likely be offset by lower starts from homebuilders.

INFLATION

- Barclays strategists said the tariffs could lift the personal consumption expenditure index, the Fed's preferred inflation gauge, by 35-40 basis points on a yearly basis over a 12​-​month period.

- Goldman Sachs said tariffs, if implemented, would boost the U.S PCE index, excluding volatile items such as food and energy, by 0.9%, according to estimates made on January 21.

($1 = 0.9700 euros)

(Reporting by Johann M Cherian, Pranav Kashyap, Lisa Pauline Mattackal and Medha Singh in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)

((johann.mcherian@thomsonreuters.com))