OREANDA-NEWSFears that a trade war between the US and China will lead to a recession in the US economy are growing, the two largest economies in the world are unlikely to make a deal before the next US presidential election (in 2020). This is the opinion of analysts from Goldman Sachs Group Inc., reports the American media.

“We look forward to the entry into force of tariffs on the remaining imported goods from China worth $ 300 billion”, the agency quoted the bank as a message sent to customers. US President Donald Trump announced on August 1 that he would impose ten percent duties on the remaining $ 300 billion worth of Chinese goods from September. The United States also accused China of currency manipulation after the yuan depreciated. Beijing denies the allegations.

Goldman Sachs said it lowered its forecast for US economic growth for the fourth quarter by 20 basis points, to 1.8%, amid more significant than expected, the impact of the trade war. “In general, we have increased our assessment of the impact of the trade war on economic growth”, the bank said. A trade war broke out between the U.S. and China in 2018. This happened after Trump began to introduce import duties on Chinese goods. Beijing began to respond to Washington in a mirror. The parties have repeatedly negotiated a deal that could put an end to the trade war between the two largest economies, but this hasn't been possible yet.

According to sources in a Chinese newspaper and an American news publication, Washington and Beijing decided to take a break from the trade war ahead of the G20 in Osaka. This, according to the interlocutors of the publications, was one of the conditions for the meeting between Trump and Xi Jinping on the sidelines of this summit. How long this break will last, sources have not specified.