Wall Street firms are warning that the risk of the U.S. economy falling into a recession are rising as President Trump's tariff plans could lead to an escalation of the trade war.

President Donald Trump said on Wednesday he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners, a move that could escalate a trade war and upend the global economy.

President Donald Trump's November victory was expected to usher in a new round of corporate income tax cuts and fuel share repurchase activity. However, tariff policy has dominated the discussion through Trump's first two months in office.