The Australian sharemarket closed lower on Wednesday as United States tariffs came into effect, intensifying pressure on global trade.
The S&P/ASX 200 dropped 135 points, or 1.8%, to close at 7,375.0, led lower by energy and materials sectors.
The sell-off accelerated following the White House’s decision to impose a 104% tariff on Chinese imports, significantly impacting demand from one of Australia’s largest commodity customers. The move is part of a broader series of reciprocal trade measures targeting dozens of countries.
Major miners were hit as iron ore prices fell to fresh six-month lows of US$93.70, with BHP falling 3.5%, Rio Tinto down 5%, Fortescue Metals down 4.2%, and Champion Iron plummeting 14.2%.
Oil and gas shares also slumped amid a continued decline in crude prices. Santos dropped 5.7%, Woodside lost 3.7%, while Beach Energy Shed 4.9%.
Healthcare stocks followed suit, down 3.7% overall. CSL plunged 5% after Trump said in a speech he would soon announce a “major” tariff on pharmaceuticals, sparking fears of supply chain disruption and rising costs.
In corporate news, Regal Partners fell 11.3% after the hedge fund manager reported a $540 million hit to its funds in the March quarter.
Meanwhile, Star Entertainment announced it had completed the sale of The Star Sydney Event Centre and additional assets within its Sydney complex to Foundation Theatres for A$60 million (US$35.4 million), as the group continues efforts to shore up its balance sheet.
On the bond markets, the 10-year Australian government bond yield jumped 2.6% to 4.368%, while the 2-year yield dropped 3.6% to a two-year low of 3.232%.
