US’s Trade War with China and Mexico Likely to Intensify Further: Goldman Sachs
According to economists at Goldman Sachs, the likelihood of the US imposing more tariffs on $300 billion on Chinese goods has gone up..
Here’s some pessimistic outlook on the ongoing trade war by the US. According to economists at Goldman Sachs, the likelihood of the US imposing more tariffs on $300 billion on Chinese goods has gone up from 40% to 60%.
The chances of announcing more tariffs have gone up ever since Trump announced new tariffs on Mexican goods in a bid to curb illegal immigration. The investment bank expects a 70% likelihood of the 5% tariffs coming into effect from June 5, and an over 50% likelihood that these tariffs could go up to 10% on July 1.
Economists at the bank have also painted a bleak picture with regards to the USMCA trade agreement between US and Mexico and Canada. They have cut their estimated likelihood of the USMCA being ratified in 2019 from 60% to 35% given the current market sentiment.
In addition, they have predicted a 40% chance of the US going ahead with tariffs on imported cars later this year. Previously, the economists had estimated a 25% likelihood of car tariffs being imposed.
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