Wall Street reacts to Trump's tariff announcement as the stock market drops

The markets are in risk-off mode and pricing-in weaker global economic growth,

said Kyle Rodda, senior financial market analyst at Capital.com

Safe haven trades in the wake of the announcement will include the Japanese yen most definitely,

said John Hardy, chief macro strategist at Saxo Bank

When the press conference first started the President said tariffs would start with a 10 per cent baseline across the board. That was better than expected, which was why we saw futures rallying. But once he got to specifics and started giving examples which were significantly higher than 10 per cent, that’s when futures turned around and went negative because it was worse than expected,

said Chris Zaccarelli, chief investment officer at Northlight asset management

We do not know how long the previously enacted tariffs and any future tariffs will remain in force, but we believe peak tariff uncertainty may soon be behind us,

according to Kurt Reiman, head of fixed income Americas, and other strategists at UBS Global Wealth Management

The market has moved higher since the headline came across that Elon Musk will be leaving the Department of Government Efficiency soon, and that's reflected not only in the S&P 500 and Nasdaq but Tesla's stock moving higher,

said Art Hogan, the Boston-based chief market strategist for B. Riley Wealth

It’s our declaration of independence,

Trump said at an event in the White House Rose Garden

Jobs and factories will come roaring back into our country, and you see it happening already,

Trump said at the event

We've just got one side of the story, which is what we're doing. And the other side of the story is how other countries respond to what we're doing,

said Walter Todd, chief investment officer at Greenwood Capital in Greenwood, South Carolina

While the market was positioned to bounce on a ‘less bad than expected’ tariff announcement, there is no way to spin today’s news as positive for the economy or stock market,

said Ellerbroek

The silver lining for investors could be that this is only a starting point for negotiations with other countries and ultimately tariff rates will come down across the board — but for now traders are shooting first and asking questions later,

said Zaccarelli

The roller coaster ride continues as the initial leaks were positive … but then the details were released and they were far worse than expected,

said Chris Zaccarelli, chief investment officer at Northlight Asset Management

Trump is enacting a very aggressive tariff policy, far more aggressive than most investors thought possible six months ago,

said Jed Ellerbroek, portfolio manager at Argent Capital

What was delivered was as haphazard as anything this administration has done to date, and the level of complication on top of the ultimate level of new tariffs is worse than had been feared and not yet priced into the market,

Art Hogan, chief market strategist at B Riley Wealth Management, told CNBC

We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing,

Ives wrote in a Wednesday note following the president's announcement

Dick Durbinsenate Democratic Whip

The President is risking a recession with this national sales tax he calls tariffs—while needlessly alienating our closest allies,

Senate Democratic Whip Dick Durbin wrote in a statement

Amy Klobucharsenator

Well, the stock market's closed, but the futures are tanking,

Amy Klobuchar, D-Minn., said on the Senate floor following Trump's proclamation

The optimal monetary response is to stimulate the economy, raising aggregate income and boosting demand for imported goods,

wrote Minneapolis Fed economist Javier Bianchi and University of Wisconsin-Madison assistant professor Louphou Coulibaly

Christopher Wallerfed Governor

If, as I expect, tariffs do not have a significant or persistent effect on inflation, they are unlikely to affect my view of appropriate monetary policy."

Fed Governor Chris Waller, however, was a bit bolder in a speech to the OECD in Paris in January, stating

Susie Leedemocratic Representative

Investor perceptions of Trump differ significantly between bond and stock markets, possibly due to political affiliations within these groups. Notably, bond markets lean Republican, whereas stock markets — and even more intensely hedge funds — lean Democratic,

Lee said

The foreign exchange market reaction could prove complex and counter-intuitive,

Karl Schamotta, chief market strategist at Corpay, said in a note