Goldman Sachs Group on Sunday said fears of the US-China trade war leading to a recession are increasing.
Goldman no longer expects a trade deal between the world's two largest economies before the 2020 US presidential election.
US President Donald Trump announced this month that he would impose a 10% tariff on a final $300 billion worth of Chinese imports on September 1, prompting China to halt purchases of US agricultural products.
The United States also declared China a currency manipulator.
China denies that it has manipulated the yuan for competitive gain.
Goldman Sachs lowered its fourth-quarter U.S. growth forecast by 20 basis points to 1.8% on a larger than expected impact from the developments in the trade tensions.