Goldman Sachs: We see a 60% chance US will put tariffs on all Chinese goods

Goldman sees more tariffs coming

There are about $267 billion in goods that aren't covered by US tariffs that were announced this week and will take effect next week. Economists at Goldman Sachs say that won't be the end. They see a 60% chance that virtually all of the goods imported into the US from China will be hit by tariffs.

"While further negotiations between US and Chinese officials are likely, we believe additional tariffs remain the most likely outcome," they write and believe a long JPY/KRW trade is their preferred way to hedge against it.

The also like short EUR against SKE and NOK and see a chance that the ECB could begin to signal that downside risks have materialized in December, but that will depend on the data.