(Reuters) - Citigroup (NYSE: C ) downgraded its stance on U.S. equities to "neutral" from "overweight", saying it expects President Donald Trump’s sweeping tariffs to impact earnings growth in the region.

"The drivers of “exceptionalism” are fading, both from a GDP and EPS perspective. Tariffs, as they stand, could negatively impact US EPS the most", analysts at Citigroup said.

The Wall Street brokerage also upgraded Japan equities to "overweight" from "underweight," and downgraded emerging markets equities to "underweight" from "neutral".