The trade war has eventually dealt a blow to the US economy. Such a consequence comes as no surprise to analysts and investors. Having unleashed the trade conflict, Washington was fully aware of risks it would pose to the domestic economy. Nevertheless, it still asserts the status of the largest global economy. Indeed, some countries which are not involved in trade jitters cannot reach such GDP rates as the US economy does in full swing of the trade conflict. Interestingly, leading rating agencies have pointed to troubles in the US economy a year later since the conflict broke out. Goldman Sachs downgraded its outlook for the US economic growth in Q4 by 20 basis points to 1.8%. Experts say that disruption of steady supply chains could pose a serious challenge. Trade uncertainty badly hurts US companies, so that they have to slash business investment. Recently, Donald Trump warned Beijing that higher tariffs on China’s imports worth $300 billion would be introduced from September 1. Goldman Sachs does not consider this an empty threat. So, all China’s imports will be subject to elevated tariffs soon. The battle of tariffs between the US and China began in 2018. The US imposed levies on some items of China’s imports. In response to anti-China rhetoric, Beijing retaliated with similar measures. One of the most powerful punitive measures against the US was the devaluation of China’s national currency. Beijing devalued the yuan to a historic low.
