ASX loses 1.8% as Trump's tariffs take effect
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The news: The Australian sharemarket closed 1.8% after another volatile session as US President Donald Trump's "Liberation Day" tariffs took effect at 2pm AEST.
The S&P/ASX 200 index ended 135 points lower at 7,375, with 10 of 11 sectors in the red.
The benchmark index dropped nearly 2% at the open before clawing back around half of those losses by midday. The selloff then resumed shortly before the commencement of the new US tariffs, which include a 10% duty on Australian goods and a total 104% levy on imports from China.
Energy (-4%) was the worst performing sector as oil giants Santos (-5.7%) and Woodside Energy (-3.7%) slumped. Benchmark oil prices fell to their lowest level in more than four years.
Mining stocks fell 3.6%, with iron ore majors Rio Tinto (-5%), Fortescue (-4.2%) and BHP (-3.5%) all sliding. Smaller peers Champion Iron (-14.2%), Nickel Industries (-14.1%), Mineral Resources (-12.1%), Alcoa Corporation (-10.9%) and Iluka Resources (-10%) made up the worst five performers on the ASX 200 index.
The healthcare sector lowered 3.6%, dragged down by biotech giant CSL (-5%), after Trump announced plans for a major tariff on pharmaceutical imports.
The Australian dollar was last buying 60 US cents after briefly dropped to its lowest level since March 2020.
Other news:
- Regal Partners (-11.9%) — Saw $1.5 billion, or 8.3%, slashed from its funds under management during the March quarter, as weaker market conditions drove a negative investment performance of $540 million.
- Woolworths (-0.3%) — Was cleared by the competition regulator to buy ready meals provider Beak & Johnston Holdings.
- Liontown Resources (-1.1%) — Commenced underground production at its flagship Kathleen Valley mine, as it transitions from open pit to underground operations from fiscal 2026.
- GQG Partners (-1.5%) — Reported higher funds under management in March and said it is repositioning portfolios amid ongoing market volatility.
What's ahead:
- China will release annual and monthly inflation figures, as well as producer prices for March (Thursday, 12:30pm AEST).
- The US will publish annual and monthly inflation data (11:30pm AEST).
