Wall Street starts to cut China growth forecasts as trade tensions with U.S. escalate

KEY POINTS

Goldman Sachs on Thursday became the latest investment firm to trim its China growth forecast on escalating trade tensions with the U.S.

Citi analysts on Tuesday also cut their outlook for China's GDP to 4.2% this year, down by 0.5 percentage point, as they see "little scope for a deal between the U.S. and China after recent escalations."

Diminishing impact from tariffs can also feed into Beijing's calculus that U.S. leverage is likely reaching a ceiling, Yue Su, principal economist, China, at the Economist Intelligence Unit, said in an email.

BEIJING — Goldman Sachs on Thursday became the latest investment firm to trim its China growth forecast on escalating trade tensions with the U.S.

In less than a week, U.S. tariffs on goods from China have more than doubled, while Beijing has hit back with more duties and restrictions on U.S. businesses.