Non-US stocks have seen their sharpest sell-off since August on fears over Trump's tariffs

• An index of non-US stocks saw their steepest decline since August this week.
• The broad sell-off came after Trump's election win stoked fears of coming trade wars.

Donald Trump's win has sent US stocks on a tear, but for equities in the rest of the world, it's sparked a sell-off on fears of a widespread economic downturn due to tariff risks.

An MSCI index of large and mid-sized stocks outside the US tumbled 1.6% on Tuesday, its steepest daily drop since August.

The Stoxx Europe 600 Index, meanwhile, lost 2.1% for its worst one-day drop in three months, while an index of emerging market stocks dropped 2%. Another index shows emerging market currencies have nearly pared their year-to-date gains with a 1% drop since the election.

The losses come a week after Trump's US election win and as the president-elect has appointed some key cabinet members.

Trump's appointments have shown a preference toward his most loyal supporters and those who he says share his "America First" protectionist agenda.

Along the campaign trail, Trump proposed an across-the-board tariff of at least 10%, with a far steeper tariff of 60% on imports from China. If enacted, those duties would pose huge obstacles for international economies reliant on trade with the US.

In Europe, analysts at Dutch bank ING say there could be a "full blown recession" under Trump's tariffs, while Germany in particular could suffer a 1% hit to GDP, according to the country's central bank president Joachim Nagel.

China's already fragile economy, meanwhile, will only be further damaged by a new trade war. Analysts at UBS say tariffs would hamstring most trade between the two nations and likely affect China's GDP.

"The mooted 60% tariff on imports from China and a 10% tariff on imports from the rest of the world could make much of US-China trade unviable, reduce US domestic demand and corporate profits, and lead to lower GDP growth around the world, particularly in China," the analysts wrote in a note last week.

As stocks in the rest of the world have faced steep declines, US shares have rallied sharply since the election.

The S&P 500 and the Dow Jones Industrial Average have each jumped to record highs, driven by gains in Trump trades like bitcoin, Tesla and shares of banks expected to benefit from deregulation and tax cuts.