President Trump’s efforts to calm investors while he launches a full-scale trade war with China showed signs of cracking Monday, as one of his top advisers admitted the approach could damage the U.S. economy, a Goldman Sachs report predicted it might lead to higher interest rates and China vowed to impose tariffs on $60 billion in U.S. goods on June 1.
China’s response, announced by its Ministry of Finance, said it targeted “U.S. unilateralism and trade protectionism.”
The rapid-fire succession of stark economic news spooked financial markets, with U.S. futures indicating drops of nearly 2 percent at the open for both the Dow Jones industrial average and the Standard & Poor’s 500 index. While many business executives and investors had hoped tensions between the U.S. and China would be resolved easily, the recent developments show how much each country is digging in for a long fight.
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