Stocks face the prospect of a global trade war following a sweeping series of tariffs put in place by President Donald Trump.

Goldman Sachs economists estimate that if the latest trade tariffs announced by U.S. President Donald Trump after assuming office in his second term are sustained, they could take a significant chunk out of Corporate America's bottom line.

Traders are shocked that a president who said he would place tariffs on countries with whom the U.S. has notable trade deficits has put tariffs on some of those countries. After Canada, Mexico and China, the European Union may be next.

Goldman Sachs predicts limited short-term impact on oil prices from US tariffs, but warns of potential gasoline price hikes and a long-term risk of trade war-induced price crashes.

The new tariffs imposed by U.S. President Donald Trump on imports from Canada, Mexico, and China are likely to have a limited near-term impact on global oil and gas prices, Goldman Sachs said in a note on Sunday.