US President Donald Trump’s latest round of tariffs on major global economies sent shockwaves through the Australian stock market on Thursday, plunging the ASX200 into a steep decline as investors grappled with escalating trade tensions.
The benchmark ASX200 plummeted 74.8 points (0.94%) to close at 7,859.7, while the broader All Ordinaries index slumped 80.4 points (0.99%) to settle at 8,052.7. Despite an afternoon rebound from the morning low of 7,768, the sell-off wiped out a staggering $21 billion in market value.
US futures also nosedived following Trump’s surprise “Liberation Day” tariff announcement, which imposed higher-than-expected levies on imports.
Global Recession Fears Mount
Betashares chief economist David Bassanese described the tariff escalation as near a worst-case scenario, warning that the likelihood of a US and global recession had risen sharply.
“The key question now is whether today’s announcement marks the end of trade uncertainty or merely the beginning,” Bassanese cautioned.
China now faces a combined tariff rate of 54%, while the European Union has been hit with a 20% levy. Australia, though faring slightly better, will still face a minimum 10% tariff on exports to the US.
“For Australia, the real impact will be indirect—primarily through weaker global economic growth, particularly in China,” Bassanese added.
Market Bloodbath: Tech, Energy, and Mining Take Heavy Hits
Eight of the 11 industry sectors closed in negative territory, with the IT sector suffering the most, plummeting 2.87%.
- Wisetech Global dropped 2.68% to $81.74
- Xero tumbled 3.44% to $150.42
- Nextdc fell 3.56% to $11.38
Energy and materials were also heavily impacted, shedding 2.71% and 2.01%, respectively.
- Woodside Energy lost 2.89% to $22.48
- Santos declined 2.52% to $6.57
- Beach Energy slid 2.79% to $1.40
- BHP plunged 3.42% to $37.01
- Rio Tinto dropped 2.73% to $111.94
Coal and copper miners faced brutal losses:
- Whitehaven Coal crumbled 7.6% to $4.86
- Coronado Global Resources fell 4.84% to $0.30
- Sandfire Resources declined 6% to $9.55
- Capstone Copper tumbled 7.25% to $7.68
Banks Show Mixed Performance, Consumer Staples Shine
The major banks had a mixed day:
- Commonwealth Bank rose 1% to $156.37
- ANZ fell 1.38% to $29.25
- Westpac edged down 0.5% to $31.74
- NAB slipped 1.21% to $34.18
- Coles gained 2.11% to $20.29
- Woolworths rose 1.9% to $30.11
Ongoing Volatility Expected
eToro market analyst Josh Gilbert warned that Australian investors should brace for months of market turbulence.
“While Australia’s direct trade exposure to the US is minimal, the secondary effects from China and broader Asian economies—where tariffs have hit hardest—could significantly weigh on our export-driven economy,” he explained. “Any slowdown in global demand or commodity prices will have a direct local impact.”
Gilbert emphasized that investor focus would now shift to earnings guidance and central bank responses.
“If today’s sell-off wasn’t a wake-up call, it should be. Markets are moving into a period of heightened volatility, and investors should prepare accordingly.”
Cettire and Ansell Lead Decliners
In corporate news, luxury fashion retailer Cettire suffered a brutal 14.47% drop to $0.68 after revealing that new US tariffs could impact its European-made goods. The company noted that 41% of its gross sales in the first half of FY25 involved EU-manufactured items sold to US customers.
“The full implications of these tariff changes are still being assessed, but several major luxury brands have already indicated potential price hikes in response,” Cettire stated.
The biggest loser on the ASX200 was Ansell, plunging 14.33% to $29.34, while the top gainer was gold miner Ramelius Resources, which climbed 5.2% to $2.42.
Meanwhile, the Australian dollar remained largely unchanged, slipping just 0.01% to US63c at the closing bell.
Looking Ahead
With trade tensions escalating and global growth concerns mounting, investors remain on edge. All eyes will now be on how key economies respond and whether diplomatic solutions can prevent a full-scale trade war. Until then, market volatility is here to stay.
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Mitchell
Mitchell is a seasoned Ph.D. scholar with extensive expertise gained through years of rigorous research, publication, and teaching experience. He brings a wealth of knowledge and analytical skills to tackle complex academic challenges. His work is dedicated to delivering innovative solutions, advancing knowledge, and promoting academic excellence. Proficient in research methodology, data analysis, and scholarly writing, Mitchell has contributed to peer-reviewed journals and mentored students to achieve academic success.
