Goldman Sachs expects aggressive duties from the White House to raise inflation and unemployment and drag economic growth to a near-standstill. In a note Sunday, the firm said "we continue to believe the risk from April 2 tariffs is greater than many market participants have previously assumed.

One recent report from Goldman Sachs sounded the alarm on an unintended execution that could be devastating collision course economic fallout from the White House’s bellicose tariff tactics. The financial giant believes these responsibilities will increase inflation.

Investment bank Goldman Sachs has warned that U.S. President Donald Trump's sweeping new tariffs may spike inflation and shrink the economy in coming months to the point of a recession.

The initial market reaction suggested that the scale of the tariffs on Wednesday had come as a surprise and analysts were still trying to figure out how they had been derived.

The penalties announced on Wednesday unleashed turbulence across world markets and drew condemnation from other leaders facing the end of an era of trade liberalization that has shaped the global order for decades.

President Trump on Wednesday announced sweeping new tariffs, threatening to upend much of the architecture of the global economy and trigger broader trade wars.