Goldman Sees Higher Odds for Continued U.S.-China Stalemate

  • Trump, Xi may leave G-20 with understanding talks will go on
  • Formal deal at June summit unlikely as rhetoric ratchets up

Donald Trump and Xi Jinping in 2017.

Photographer: Alex Brandon/AP
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Fresh trade moves in recent days -- including the Trump administration’s actions toward foreign communications technology in general and Huawei Technologies Co. in particular -- are boosting the risk of more U.S. tariffs on imports from China, while trimming the chances for a formal deal at the June G-20 meeting, according to Goldman Sachs.

“The odds of a continued stalemate have risen, we believe, as have the odds of additional tariffs,” Goldman economist Alec Phillips wrote in a note.