Goldman Sachs economists say fears rise that U.S.-China trade war leading to recession

SHARE:

(Reuters) - Goldman Sachs Group Inc (NYSE:GS) said on Sunday that fears of the U.S.-China trade war leading to a recession are increasing and that Goldman no longer expects a trade deal between the world's two largest economies before the 2020 U.S. presidential election.

"We expect tariffs targeting the remaining $300bn of US imports from China to go into effect," the bank said in a note sent to clients.

U.S. President Donald Trump announced on Aug. 1 that he would impose a 10% tariff on a final $300 billion worth of Chinese imports on Sept. 1, prompting China to halt purchases of U.S. agricultural products.

The United States also declared China a currency manipulator. China denies that it has manipulated the yuan for competitive gain.

The year-long trade dispute has revolved around issues such as tariffs, subsidies, technology, intellectual property and cyber security, among others.

Goldman Sachs said it lowered its fourth-quarter U.S. growth forecast by 20 basis points to 1.8% on a larger than expected impact from the developments in the trade tensions.

"Overall, we have increased our estimate of the growth impact of the trade war," the bank said in the note authored by three of its economists, Jan Hatzius, Alec Phillips and David Mericle.

Rising input costs from the supply chain disruption could lead U.S. companies to reduce their domestic activity, the note said. Such "policy uncertainty" may also make companies lower their capex spending, the economists added.

Original Article

COMMENTS

Name

Commodities,3426,Economic Indicators,2286,Economy,7623,Forex,1811,Politics,2667,Sports,8975,Stock Markets,14744,Tech,3912,World News,1944,
ltr
item
Business, Financial News and U.S, International Breaking News and more | ReutersHerald: Goldman Sachs economists say fears rise that U.S.-China trade war leading to recession
Goldman Sachs economists say fears rise that U.S.-China trade war leading to recession
https://i-invdn-com.akamaized.net/trkd-images/LYNXNPEF7A0PJ_L.jpg
Business, Financial News and U.S, International Breaking News and more | ReutersHerald
http://www.reutersherald.com/2019/08/goldman-sachs-economists-say-fears-rise.html
http://www.reutersherald.com/
http://www.reutersherald.com/
http://www.reutersherald.com/2019/08/goldman-sachs-economists-say-fears-rise.html
true
7847844249671807439
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share. STEP 2: Click the link you shared to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy