From smallcaps.com.au: Markets have reacted negatively to President Trump’s announcement of tariffs, which are seen as a move toward protectionism and could heighten the risk of recession, with Americans facing increased costs on essential goods.

The effective tariff rate is estimated at 22.5%, potentially reducing GDP and disproportionately affecting lower-income consumers.

This economic uncertainty is compounded by fears of retaliatory tariffs from other nations and the complications arising in supply chains, destabilizing the global trading environment.