Donald Trump’s market rocking tariff announcements have wiped tens of billions off the Australian Securities Exchange and sent US futures plummeting as a looming trade war spooks investors.
Australia was hit with sweeping 10 per cent tariffs – the baseline levy – on all goods exported to the US while many other nations have suffered far worse.
Chinese-made goods face an additional 34 per cent tariffs, bringing the total rate to 54 per cent, while the European Union was hit with a 20 per cent tariff and a 24 per cent for Japan.
In reaction to the US President’s announcement, the ASX 200 plunged about 1.8 cent on open, wiping more than $55b off the bourse.
Australian manufacturers were some of the worst impacted by Trump’s new tariffs.
Kitchen supply maker Breville Group initially dropped more than eight per cent while Ansell, which primarily makes gloves and other latex and rubber based personal protection equipment, is down almost 12 per cent.
Mining giant Mineral Resources and automotive parts retailer ARB Corporation each initially fell about five per cent.
Sky News’ Business Editor Ross Greenwood said the ASX has been “smashed” by Trump’s tariffs.
“Fair and simple, it’s been hit hard and so have overseas markets,” Greenwood said.
“Somewhere between $50b-$60b has been wiped off the value of Australian shares.”
After all rising about half a per cent before Trump’s tariff announcements – which were delivered just as US markets were closing – trading futures in the US have also plummeted.
The tech-heavy Nasdaq Futures plunged more than four per cent during after-hours trading, while S&P 500 Futures sank about 3.5 per cent and Dow Futures dropped about 2.4 per cent.
Elsewhere, futures for Japan’s Nikkei 225 is down about 1.6 per cent.
Greenwood noted the price of gold, which is already at record levels, shot up after Trump’s “Liberation Day” announcements as investors turn to commodities in the face of possibly inflationary tariffs.
“As you have tariffs you have increasing prices, particularly in America, which could lead to inflation,” he said.
“The gold price has … jumped even higher today. Up by about 0.8 per cent – $26.”
Meat is expected to be the most impacted industry as it is Australia’s largest export to the US at about US$4b per annum.
Coins and metals (US$2b) follows while pharmaceuticals (US$1.4b), optical and medical exports (US$1.2b) and machinery (US1.2b) will also cop a hit.
