FTSE 100 share prices sink after Trump tariffs announcement as analysts warn of high US recession risk

The tariff hike was larger than most market participants were expecting, so the initial market reaction is likely going to be a continuation of risk-off sentiment,

said Lynn Song, chief economist for Greater China at ING

China's recent tech re-rating is mostly insulated from tariffs,

said Eugene Hsiao, head of China equity strategy at Macquarie Capital,

I think the numbers are shockingly high compared to what people were expecting and it is inexplicable in many ways,

said Peter Tchir, head of macro strategy at Academy Securities

Andrew Brennermember of the State Senate of Ohio

Trump is going to war with countries on this,

said Andrew Brenner, head of international fixed income at National Alliance Securities

This ‘liberation day,’ I call it tariff-palooza,

said George Goncalves, head of U.S. macro strategy at MUFG Securities, speaking before Mr. Trump’s announcement

Investors no longer see tariffs as a one-time event risk, but an always-present risk,

she said,

Trump has made it clear that this is the end of the established economic order, and he wants America calling the shots. These tariffs are stark and perhaps more aggressive than many in the market had been expecting. Indeed, Trump scheduled this press conference for after the stock market closes for good reason, with the US futures market falling sharply as a result of this speech,

Ms James said

Markets will be wanting more detail on both this and further deregulation, and given the scale of these tariffs that may need to come sooner rather than later for US equities. For businesses it remains a very volatile and uncertain economic period, and this will be reflected by markets for the time being. Investors will need be patient and calm, staying invested for the long-term,

she said