Goldman Sachs said it expects both Washington and Beijing to step back from the brink of a full-blown trade war after President Donald Trump threatened an additional 100% tariff on Chinese imports in response to Beijing\u2019s rare earth export curbs.<\/p>\n
The bank said the most likely outcome is that both sides de-escalate their most aggressive positions and return to negotiations, leading to an extension \u2014 possibly an indefinite one \u2014 of the tariff-pause agreement reached in May. Goldman noted that while tensions remain high, neither side has an interest in triggering major economic disruption given the global reliance on Chinese rare earths and the US\u2019s own exposure to supply-chain risks.<\/p>\n
The analysis implies that Trump\u2019s threat may be intended as leverage rather than an imminent policy move, while Beijing\u2019s restrictions may serve as a bargaining tool to protect its technological advantage. Goldman sees the likely path as a \u201cmanaged confrontation\u201d \u2014 a tense but stable phase in which both economies avoid escalation while maintaining political pressure.<\/p>\n
— <\/p>\n
Goldman\u2019s assessment points to a lower immediate risk of tariff escalation, which could support risk assets and commodity markets sensitive to rare earth supply. However, the \u201cpause\u201d scenario still leaves uncertainty over trade policy and tech-sector supply chains.<\/p>\n
Earlier:<\/p>\n
Friday ICYMI:<\/p>\n
Late Friday:<\/p>\n
China responds over the weekend:<\/p>\n
Some TACO moves already, some murmurings of Trump already backing off. BRB with more on this:<\/p>\n
Latest:<\/p>\n","protected":false},"excerpt":{"rendered":"Goldman Sachs said it expects both Washington and Beijing to step back from the brink of a full-blown…\n","protected":false},"author":2,"featured_media":196529,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55,85678],"class_list":{"0":"post-196528","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom","13":"tag-us-china-rare-earths-standoff"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/196528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=196528"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/196528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/196529"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=196528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=196528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=196528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}