Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon, today is Tuesday, April 3rd, and I'm your host, Kim Khan.

Our top story today is our only story. Tariffs.

One millisecond makes you beyond imagine tomorrow, and into the day after.

That's right, it's the day after tariffs, and markets are tumbling.

The major stock averages are all down more than 4%.

Flights to bonds push yields down, and the 10-year treasure yield is bumping up against 4%.

Deutsche Bank's Jim Reed said, in short, the tariffs put in place last night were extraordinary,

both in terms of scale and in how they were calculated, with President Trump announcing reciprocal

tariffs under the International Emergency Economic Powers Act as he declared a national emergency

over the trade deficit.

Markets caught off guard by the severity of Trump's tariffs reacted dramatically,

Jacob Falcon Crone said. He's the global head of investment strategy at Saxo Bank.

This was the worst case scenario for tariffs, and we're not priced into markets,

which is why we're seeing such a

risk-off reaction, Sanctuary Wells' chief investment strategist Marianne Bartle said about stocks.

Oil prices tumbled more than 5% on concerns about a global trade war recession.

The tariffs were bigger than expected, UBS commodity analyst Giovanni Stovano said.

The question is how other nations will respond, including whether it will see stimulus measures. So, how are these new tariffs

calculated? According to the U.S. trade representative, reciprocal tariffs are calculated as the

tariff rate necessary to balance bilateral trade deficits between the U.S. and each of our

trading partners. This calculation assumes that persistent trade deficits are due to a combination of

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