President Trump’s escalating trade war and sliding consumer confidence has doubled the probability of a recession to 35%, according to Goldman Sachs. CNBC Senior Markets Correspondent Dominic Chu joins Chris Jansing to provide an update on how the markets are bracing for new Trump tariffs this week.

Consumer spending, which accounts for about 70% of U.S. economic activity, could slowly fade away as households bolster savings to ease the blow of a potential downturn, Sonola said. Meanwhile, businesses could slash their investments, which make up about 15% of gross domestic product, he added.