People are reflected on a window of a currency exchange in Buenos Aires' financial district, Argentina, September 3, 2018. Marcos Brindicci | Reuters

While investors worry about the impact tariffs will have on profits, currency issues are scaring companies more so far. Early results from third-quarter earnings season show that more executives are citing foreign exchange pressures than the tariff battle in which the U.S. has found itself with its trading partners, according to a FactSet examination of conference call transcripts. With just 24 companies in the reporting so far, the sample size is small. But it's a trend worth watching as investors look for any sign that could derail what otherwise should be a stellar season. FactSet expects a 19.1 percent profit gain from the same period a year ago for the index. So far, 15 of the 24 reporters, or 60 percent, cited foreign exchange issues at some point during their conference calls as a negative factor either in the previous quarter or for the future. That's a 25 percent rise from the third quarter in 2017, FactSet's John Butters noted. A strong dollar hurts global companies by reducing their foreign earnings when translated back into dollars as well as making their products more expensive overseas. The ICE U.S. Dollar index, which tracks the greenback versus a basket of major currencies, is up 6 percent in the last six months.

The term "tariff" came up just 12 times, or 50 percent, and only half that group reported a negative impact. That's up from just one company citing the levies during the second quarter, but the bulk of the tariffs did not come online until late in the third quarter. The worry with tariffs is that they could raise the cost of goods the U.S. imports, particularly from China, while also closing off markets to companies abroad. China has retaliated against the U.S. duties while the two sides look to hammer out an agreement. Billionaire investor Carl Icahn told CNBC in an interview Monday that tariffs are "a dangerous game" that have led to market crashes in the past. Companies that Butters cited offered a variety of indicators for how they were being impacted on both fronts.

'Currency-driven inflation'