Australian shares fell to a near eight-month trough on Friday, with commodity companies leading a broad sell-off, as US President Donald Trump’s sweeping tariffs triggered worries of a global economic slowdown.
The S&P/ASX 200 index fell as much as 2% to 7,704.60 points by 1154 GMT.
The benchmark hit its lowest level since August 9, 2024. Trump’s new baseline 10% tariff on imported goods and some eye-watering reciprocal tariffs on dozens of countries raised fears of a full-blown trade dispute hitting an ailing global economy.
Wall Street stocks posted their biggest drop since 2020. Overnight, the US Dow Jones Industrial Average fell 1,679.39 points, or 3.98%, at 40,545.93 points.
The S&P 500 lost 274.45 points, or 4.84%, while Nasdaq fell 1,050.44 points, or 5.97%.
In Sydney, energy firms shed as much as 6.8% to touch their lowest level since November 2020.
The sub-index was on track for its worst day since September 2022 after oil prices posted their steepest fall in three years.
Brent futures ended Thursday’s session 6.42% lower at $70.14 a barrel.
US West Texas Intermediate crude futures finished at $66.95 a barrel, down 6.64%. Sector majors Woodside Energy and Santos fell 7% and 7.2%, respectively.
Australian shares crash in Trump tariff meltdown
Mining sector fell as much as 2.6% to their lowest level since September 2024 as iron ore prices declined.
Global miner Rio Tinto lost 2.3% while Fortescue was down 1.6%.
Technology firms declined as much as 5% to a 1-year low, tracking their US peers. Financial firms were trading 1.6% lower.
Bucking the trend, the hunt for safe havens pushed investors to seek refuge in consumer staples, with the overall consumer index gaining 0.6%.
Top grocers Woolworths and Coles were up 0.9% and 2.1%, respectively.
New Zealand’s benchmark S&P/NZX 50 index fell 0.8% to 12,234.58 points.
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