Auto companies once again took the brunt of the selling on another tough day for markets on Friday after President Donald Trump announced steep tariffs on vehicle imports to go with a wave of other US levies pencilled in for next week.

The mood on trading floors has soured in recent weeks as the White House presses ahead with its hardball policy approach that has hit friend and foe alike and fuelled recession fears.

The president's pledge to impose 25 percent levies on all autos coming into the United States overshadowed earlier indications that planned reciprocal measures due on Trump's "Liberation Day" on April 2.

Governments around the world have hit out at the announcement, with Canadian Prime Minister Mark Carney saying the "old relationship" of deep economic, security and military ties with Washington "is over".

But warnings of retaliation have stoked worries of a long-running global trade war and a reignition of inflation that could force central banks to rethink plans to cut interest rates.

Uncertainty........

© International Business Times