Stock markets around the world tanked on Monday, as investors were gripped with fear about potential economic devastation from President Trump’s sweeping tariffs.

Several major investment banks have cut their forecasts for the economy in recent days, with Goldman Sachs being the latest. It said in a client note the probability of a recession had risen to 45% from 35%. JP Morgan last week said the risk of a recession had risen above even odds to 60%.

In Asia, stock markets closed deep in the red, as investors digested the prospect of a bruising trade war between the world’s top two economies. China announced plans for a fulsome retaliation against Trump’s tariffs after markets had closed on Friday.

Some markets set grim records.

Hong Kong’s benchmark Hang Seng Index slumped 13.2% on the day, its biggest one-day drop since 1997, the year Britain returned the former colony to China, according to Reuters. Taiwan’s composite index shed nearly nearly 10% in its biggest one-day drop on record.

In mainland China, key indexes closed down as much as 9%. Japan’s Nikkei index fell close to 8%.

The carnage was not limited to Asia.

In early trading in Europe, France’s CAC 40 Index, Germany’s blue chip DAX index and Britain’s FTSE 100 Index were all down 4%-6% in early Monday trading.

U.S. futures also showed weakness. The S&P 500 and Dow Jones Industrial Average had lost slightly more than 3% ahead of Monday morning’s opening on Wall Street.