Goldman Sachs Predicts China's Fiscal Response to US Tariffs

Goldman Sachs anticipates China implementing more fiscal measures to counteract the economic impact of new US tariffs. The bank has also downgraded Taiwan to underweight in its Asian market strategy due to its reliance on American exports and market vulnerability.

Goldman Sachs has forecasted additional fiscal measures from China aimed at countering the economic slowdown expected from the United States' recently announced tariffs. The investment bank released this outlook in a report issued earlier this week.

This comes as Goldman Sachs also adjusted its Asian market allocations, shifting Taiwan to an 'underweight' status. The change reflects concerns over Taiwan's significant dependence on American exports and its market's sensitivity to developments in trade relations.

The bank's assessment underscores the broader economic repercussions of elevated US-China trade tensions and their ripple effects on regional markets, with particular attention to nations closely tied to the American economy.

(With inputs from agencies.)