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Goldman: How China could fight back next

  • China could switch to other tactics like barring U.S. service sector companies or intentionally driving down the value of its currency, Goldman Sachs economists said.
  • The U.S. is threatening to put tariffs on $150 billion of Chinese goods, but China can't retaliate in kind because it imported only $131 billion in U.S. goods last year.
  • So far the latest threat of $100 billion in tariffs by President Donald Trump seems to be a negotiating tactic, but Goldman's Jan Hatzius told CNBC the risks of a trade war have increased.

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