The ASX 200 faced a notable downturn today, closing 1.8% and wiping out much of Tuesday’s gains, as the implementation of US President Donald Trump’s “reciprocal” tariffs hit hard. The tariffs affected several international trade channels, imposing a 10% tariff on Australian goods and a severe 104% on Chinese imports after an acceleration in trade tensions between the world’s two largest economies.
This brings the ASX 200 to minus 10.07% on the year so far, with the All Ords slightly behind, with losses of 10.67% through the first few months of 2025.
Materials and energy sectors were significantly hit, with both falling more than 3%. Pilbara Minerals (ASX: PLS) ended the day down 8.36%, as Champion Iron (ASX: CIA), Nickel Industries (ASX: NIC), and Mineral Resources (ASX: MIN) all ended closed down more than 12% on the day. (Mining giants Fortescue (ASX: FMG), Rio Tinto (ASX: RIO), and BHP (ASX: BHP) recorded losses of 4.18%, 5.01%, and 3.45% respectively.
On the currency front, the Australian dollar slumped to its lowest point since March 2020, now exchanging at 59.6 US cents. This decline in the Australian dollar reflects broader market apprehensions regarding trade uncertainties.
The gainers’ list was much shorter, with those leading the index up more moderately. BSP Financial (ASX: BFL) gained 4.29%, Bapcor (ASX: BAP) added 3.28%, and The a2 Milk Company (ASX: A2M) rose 2.56%, to close in the green.
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The US tariffs have instilled a significant amount of market uncertainty, with the ASX 200 VIX Index closing the day back above 22 after a 5.32% rise on the day. The coming weeks will be critical in evaluating the long-term impacts of these tariffs on global commerce and market stability, with the bulls looking for signs of deal making and negotiations to appease some pressure on the markets.
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