According to Goldman Sachs, due to a larger-than-expected impact of recent trade war events, it decided to lower its fourth-quarter growth forecast by 20 basis points to 1.8%.

The firm is expecting the new round of tariffs to go through in September and it no longer expects a trade deal before the upcoming 2020 election.

Goldman Sachs chief U.S. economist Jan Hatzius says financial conditions, policy uncertainty, business sentiment, and supply chain distribution will all contribute to lower-than-expected growth as a result of the trade dispute.

Source: https://www.reuters.com/article/us-global-markets-idUSKCN1V201P