Donald Trump’s tariff back-flips plunge ASX deeper into sea of red

The Australian share market is on track for its worst close since September, after a Wall Street sell-off that followed yet another backflip on tariffs from US President Donald Trump.

The benchmark S&P/ASX200 index had dropped 125.2 points in early trading, or 1.55 per cent, to 7969.7, while the broader All Ordinaries had fallen 124 points, or 1.49 per cent, to 8202.4.

The ASX200 hasn’t closed below 8000 since early September 2024.

The red morning followed a Wall Street sell-off, where the S&P500 slumped 1.78 per cent and Nasdaq sank 2.61 per cent, as uncertainty over US trade policy weighed on markets.

Mr Trump announced his third change to tariff policy in as many days, delaying new 25 per cent duties for Canadian and Mexican goods covered by existing free trade agreements until April.

“Trump’s antics are causing mass uncertainty, for investors and others,” Moomoo market strategist Jessica Amir said.

“The gains made the day prior in the Nasdaq-100 and the S&P 500 were not only erased, but those indices hit new lows, with the Nasdaq-100 now officially in a correction.”

Banks weighed heavy on the local bourse, with CBA down 3.8 per cent to $147.75, its lowest price since November, and broader financial stocks 2.5 per cent lower, leading sector losses.

Westpac fell 2.75 per cent after the bank’s retail banking head Jason Yetton announced his departure, six months after missing out on the top job to new chief executive Anthony Miller.

Information technology and telecommunications stocks were also selling off, down 2.0 and 1.7 per cent respectively.

Financial accounting software company Xero gave up more than 3.0 per cent to trade at $166.53 as the headline-grabbing Wisetech lost 1.9 per cent. Wisetech has given up more than a quarter of its value since February.

Energy stocks continued lower, shedding 1.3 per cent despite oil prices stabilising overnight.

Brent crude futures were trading still below $US70, while their West Texas equivalents were holding above $US66.

Oil and gas giant Woodside was down 1.3 per cent to $22.69 per share, and has lost 8.6 per cent in March.

Mining giants BHP and Rio Tinto were fairly steady by comparison, down 0.3 and 0.05 per cent respectively, helped by an iron ore price that has consolidated just above $US100 since Tuesday.

Consumer discretionary stocks bled 1.7 per cent lower, tracking with a 1.6 per cent drop in Kmart and Bunnings owner Wesfarmers, which was trading at $71.84.

The Australian dollar was slightly lower against the Greenback, buying 63.27 US cents, down slightly from 63.38 US cents at 5pm on Thursday.