Goldman Sachs on further US China trade war escalation … 'likely'

Comments from the bank on intensification of the dispute still to come and how to trade it in forex

Further US-China trade escalation looks likely

• We believe there is a 60% chance that the US will impose tariffs on most or all of the $260+bn of imports from China that are not covered by the tariffs announced to date
• While further negotiations between US and Chinese officials are likely, we believe additional tariffs remain the most likely outcome.
• Long JPY/KRW is our preferred hedge for China trade risk

Earlier today I posted this on US / China relations:

• Weekend - China declines further trade talks with US