Photo: Brendan McDermid / Reuters
Analysts at major investment Bank Goldman Sachs concluded that the American economy will decline. The Bank believes that the trade dispute between Washington and Beijing will be resolved not before the US presidential election in 2020, according to Reuters.
Goldman Sachs said it has downgraded its forecast regarding the growth of the US economy by 20 basis points to 1.8 percent in the fourth quarter of this year.
Trade war brings uncertainty in business: the violation of the usual supply chains, could hit American companies will reduce investments in the development of business within the United States, which will affect the entire economy. Also, the Bank believes that since September 1 the new American tariffs on Chinese goods worth $ 300 billion still in force.
A trade war between the U.S. and China began in 2018. The occasion was the introduction from the United States of customs duties on Chinese goods. In response to trading aggression Beijing responded in kind. As arguments against the U.S. China used its currency, lowering the exchange rate of the yuan to a record.
The United States has accused China of manipulating the currency. China denies the charges, and on the side of Beijing the international monetary Fund, which saw excessive fluctuations. At this moment, the representatives of the countries have already held 12 rounds of negotiations have not yet led to anything. The next meeting of the heads of States will take place in September.
Video, photo All from Russia.