Goldman Sachs economists with a note on Sunday

Key points:

  • We expect tariffs targeting the remaining $300bn of US imports from China to go into effect
  • (referring to Trump's announcement earlier this month that another 10% tariff on a final $300 bn worth of Chinese imports on 1, September, which prompted China to respond by stopping purchases of US agricultural products)
  • GS have increased their estimate of the impact on economic growth of the trade war, and also that policy uncertainty may see firms lower capex spending
  • lower its Q4 US GDP forecast by 20 basis points to 1.8%