Investors have panned President Trump's tariffs, saying they are likely to hit U.S. economic growth and drive up inflation. Goldman Sachs economists cited the barrage of levies on Monday in raising the odds of a recession to 45%.

Indian shares fell sharply on Monday as concerns over a trade war and growing recession fears in the U.S. continued to fuel a global stock market rout.

During a typical recession, consumer demand drops, meaning that companies selling products and services lower their prices (or at least not raise them) in order to entice reluctant customers to spend. But Trump’s across-the-board tariffs could potentially drive price increases at the same time they send the country into a recession.