Several bank analysts, including those at JPMorgan, are fearful that a US economic recession is nearing after Donald Trump’s tariffs were launched on Wednesday. In a recent note, the U.S.’s biggest bank said that the tariffs “take the economy perilously close to slipping into recession.” The response is a cold one felt throughout Wall Street, as over $2 trillion has been wiped from the US markets in the last 24 hours.

Michael Feroli, the chief U.S. economist at JPMorgan, says Trump’s speech was at the “very hawkish end of the range of expected outcomes” from his heavily teased tariff announcement Wednesday. The plan is equivalent to the largest tax increase since 1968, the JPMorgan analyst also wrote. It could add as much as 1.5% to prices this year, using the Federal Reserve’s preferred inflation gauge, while weighing on personal incomes and consumer spending.

“This impact alone could take the economy perilously close to slipping into recession,” Feroli says. “And this is before accounting for the additional hits to gross exports and to investment spending.”

Other Analysts Also Predict a Recession

UBS economists led by Jonathan Pingle went one step further in their reaction to the tariff news. UBS predicts the U.S. will go into a technical recession, in which gross domestic product shrinks for two or more consecutive quarters. Pingle says there was already a lack of trust brewing in the current state of the US economy prior to the tariff announcement. “The expansion was already slowing, fiscal support waning, and consumption strength narrowing.” UBS also forecasts that the unemployment rate could spike to 5.5% in the ensuing economic shock.

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With the economic policy proving to be his weapon of choice, the United States economy is set to feel the effects of Trump’s Tariffs. Additionally, as BRICS prepare to face those policies, the US is signaling a recession as the Trump tariff impacts loom large over the nation.