Financial markets around the world have been reeling overnight following US President Donald Trump’s latest and most severe set of tariffs with the U.S. stock market appearing to take the worst of it so far. 

All imports to America will be subject to — at the very least — a 10 per cent levy, including Australia.

Other trade partners will be facing larger 'reciprocal' taxes, with Europe to be slapped with a 20 per cent tariff. 

• Guest: Betsey Stevenson, Professor of Economics and Public Policy at the University of Michigan, and a former member of President Obama's Council of Economic Advisors
• Producer: Tim Skelton