US-China trade war could lead to recession

By Doug Mattushek - 12 August 2019Views : 561

Goldman Sachs has decreased its growth forecast for the United States as the trade war with China intensifies.

US President Donald Trump announced earlier this month that he will impose a 10% tariff on $300 billion worth of Chinese imports on September 1. In turn, China stopped purchasing US agricultural products.

This is the latest salvo in the ongoing trade war between the two superpowers, which has also included technology bans and cyber security concerns.

The American multinational investment bank believes there is no sight of an amicable solution just yet, fueling fears of a recession. Goldman Sachs lowered the fourth quarter growth forecast of the US by 0.2 percentage points.

"Fears that the trade war will trigger a recession are growing...we have increased our estimate of the growth impact of the trade war," read a statement.