Goldman lowered its recession call Wednesday just an hour after raising the chance in a note, as the trade war saga sparked whiplash on Wall Street.

Goldman Sachs Group Inc. economists said they now see a 65% chance of a US recession in the next 12 months, citing President Donald Trump’s tariffs on US trading partners.

Goldman Sachs economists said Wednesday afternoon that a recession is no longer their base case following Trump’s tariff pause. “We are reverting to our previous non-recession baseline forecast with GDP growth of 0.

The offer, the details of which are reported by Reuters for the first time, came as senior U.S. officials, including the influential White House trade advisor Peter Navarro, raised concerns about Chinese goods being sent to America with "Made in Vietnam" labels that draw lower duties.

US stocks tumbled following President Donald Trump's announcement last week of widespread retaliatory tariffs and a 10% universal import tax, triggering fears of rising consumer prices and a potential recession.

A global recession stemming from the trade war has become the base-case scenario for Brazil’s economic team, which is now assessing its impact on growth, inflation and interest rates, according to a government official familiar with the matter.