The Australian Securities Exchange (ASX) experienced a downturn following the announcement of widespread tariffs by US President Donald Trump. The S&P/ASX 200 sank 2%, or 158.4 points, to 7,776.1, resulting in a 2.42% loss over five days. The materials sector was particularly affected. Trump’s tariffs include a 10% baseline on all US imports, with higher rates for specific countries like China (34%), Japan (24%), and the European Union (20%). Australia is also subject to the 10% tariff.
Australian Prime Minister Anthony Albanese stated he would not impose reciprocal tariffs on US goods, despite calling Trump’s tariffs ‘unwarranted.’ Albanese highlighted that the tariffs would increase costs for American households and add to global economic uncertainty. ANZ’s Head of Australian Economics, Adam Boyton, suggested the direct impact on Australian exports would be limited due to the US not being a major destination. However, Boyton noted the potential impact on global growth and market sentiment as more significant. Gold miners like Ramelius Resources, Newmont, and De Grey Mining saw gains amidst the market decline.
