Key Points
- Citi on Tuesday became one of the first investment firms to lower its China growth forecast on escalating trade tensions with the U.S.
- Goldman Sachs analysts on Tuesday cautioned that additional U.S. tariffs on China have a diminishing negative impact on the world’s second-largest economy.
- 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.
