Economy Goldman Sachs sees U.S. trade war with China and Mexico escalating

Goldman Sachs sees U.S. trade war with China and Mexico escalating

Image result for Goldman Sachs sees U.S. trade war with China and Mexico escalating
Goldman Sachs sees U.S. trade war with China and Mexico escalating

Goldman Sachs economists said there was a 60% chance that the United States would slap tariffs on the final $300 billion (£237.1 billion) of Chinese imports, up from their previous estimate of 40%.

“Rhetoric in China has intensified… additional escalation looks likely from both sides, including tariff and non-tariff measures,” Goldman Sachs economists wrote in a note late on Sunday.

After U.S. President Donald Trump announced a levy on imports from Mexico last week, GS saw a 70% chance of the tariffs on Mexican imports coming into effect at 5% on June 10 and a more than 50% chance they will rise to 10% on July 1.

GS economists also cut their chances the USMCA trade agreement will be ratified this year to 35% from 60% previously.

They saw a 40% chance of tariffs on cars coming into effect later this year, from 25% previously.