Trade Wars 2.0

Published on04 APR 2018

With President Trump following through on his campaign promise to impose protectionist trade measures against China, and Beijing responding with tariffs of its own, whether the US and China are on the brink of a trade war is Top of Mind. While some observers think a trade war and a significant hit to economic growth are inevitable, Goldman Sachs Research takes a more moderate stance. Senior Strategist Allison Nathan explains why.   

While recent US trade actions have been unique with some of it being imposed under old trade provisions that essentially conflict with WTO rules, it’s much less severe than Trump’s campaign rhetoric and will likely have a relatively small impact on growth and inflation in the US and elsewhere.

- Allison Nathan