Goldman sees a trade war escalation with an across-the-board 25 percent tariff on all imports from China as increasing USA core PCE inflation by 0.6 percentage point compared to the current 0.2 percentage point boost.
In the Roosevelt Room, Trump again told the story of how in a previous meeting with American farmers he was told that they didn't want subsidies. Some analysts said the trade aid package could encourage farmers to try to seed their crops in order to qualify for the relief despite overly wet fields that have stalled planting this spring.
Later Trump said, "I think things probably are going to happen with China fast because I can't imagine that they can be thrilled with thousands of companies leaving their shores for other places".
There were high hopes early this month that a resolution with China was within striking distance but that optimism largely evaporated when Trump said Beijing had backed away from commitments considered already settled.
Trump also called for a "united front" against China to achieve maximum results for the American people.
This year's forum comes after a tense couple of weeks in which the USA raised tariffs on Chinese imports and blacklisted Huawei.
"China's healthy, steady and sustainable growth can be maintained in the medium- and long-term", said Ning Jizhe, vice chairman of the National Development and Reform Commission.
The U.S. sanctions are a potentially devastating blow for Huawei.
"President Trump is standing up to them, sending the clear message that the United States will no longer tolerate unfair trade practices, which include non-tariff barriers and the theft of intellectual property", Perdue said.
Pompeo said on Thursday the chief executive of Huawei was lying about his company's ties to the Beijing government, and he believed more American companies would cut ties with the tech giant.
But Gopinath argues that while the tensions have damaged both countries, reducing overall trade and hurting companies, "the bilateral trade deficit remains broadly unchanged".
Now he's not sure how long it will take to resolve the trade dispute. "We have always been preparing for the worst results", he said.
"Whatever alternative Huawei comes up with for Google's digital ecosystem is extremely unlikely to be able to prevent an nearly complete loss of market share in markets outside of China", Windsor said.
China has threatened to retaliate against USA sanctions without giving details.
China retaliated by announcing plans to raise levies on $60bn of USA imports from 1 June.
Further, he US smears China "so as to confuse the public and uses trade imbalance as an excuse to impose huge tariffs, unleashing economic bullying, such as the current Sino-US trade frictions".
USA and Chinese flags are seen in front of a US dollar banknote featuring American founding father Benjamin Franklin and a China's yuan banknote featuring late Chinese chairman Mao Zedong in this illustration picture taken May 20, 2019.