13.08.2019, New York.
The US-China trade war could lead to a recession in the US economy, Goldman Sachs Group Inc analysts said on August 11, Reuters reports.
Skepticism by experts that the US and China sign a trade deal before the next U.S. presidential election in 2020 is leading to expectations of a recession. A trade war between the two largest economies will lead to a recession in the US economy.
“We expect tariffs targeting the remaining $300 billion of US imports from China to go into effect,” reported the Goldman Sachs Group.
The bank said it has lowered its fourth quarter US economic growth forecast by 20 basis points to 1.8%.
Many people link the deteriorating trade relationship between Washington and Beijing to US President Donald Trump. The acute phase of the confrontation began in January 2018, after Trump introduced a 30% duty on the import of solar panels from China.
After this incident, there were lengthy negotiations between the sides; but as a matter of fact, the situation has only worsened. China has responded to the US with counteractions.
It is worth noting that in May 2019 the U.S. Department of Commerce included the Chinese company Huawei and about 70 related companies in the so-called Entity List. This means that from now on, US companies are prohibited from doing business with Huawei without special permission from the US government.
Furthermore, in June 2019 Donald Trump announced that he intends to intensify the trade war with China and impose tariffs on $300 billion of Chinese goods.
Source: Rossa Primavera News Agency