Tariffs imposed by US President Donald Trump may not be a surprise, but they've certainly caused a shock on financial markets. Analysts say correction (a decline of of at least 10 per cent from the previous peak) on equity markets is now looking more likely.

In short:

US President Donald Trump’s tariffs on Mexico, Canada and China have hit financial markets, with Australian shares falling sharply at the open.

Analysts say correction (a decline of of at least 10 per cent from the previous peak) on equity markets is now looking more likely.

What’s next?

US stock market futures are pointing to a fall when Wall Street resumes trade on Monday, local time.