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Highlights

  • Australian market drops 2% as global trade war fears escalate
  • Trump announces 10% tariffs on all imports, heightening global trade tensions
  • Bank, miner, and energy stocks hit hard by tariff-induced anxiety

Australian shares plunged by 2% on Thursday, driven by investor fears following U.S. President Donald Trump's announcement of sweeping tariffs on all imports. The S&P/ASX 200 index (.AXJO) dropped as much as 2.1%, reaching 7,768 points, marking its largest intraday loss since December 19, 2024.

Trump's tariff plan, which includes a 10% baseline tariff on all imports and higher reciprocal duties on several countries, has sparked concerns of escalating global trade tensions. In response, several key sectors on the Australian market faced significant losses. Bank stocks were among the hardest hit, with the financial sector (.AXFJ) dropping 2.3%. Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank (ASX:NAB) saw declines of 1.6% and 2.5%, respectively. Australia's fourth-largest lender, ANZ Group (ASX:ANZ), dropped 3.2% following regulatory criticism over operational issues.

The mining sector (.AXMM) also took a hit, falling 1.7%, as tariff concerns weighed on commodities like copper and aluminium. Global mining giants BHP (ASX:BHP) and Rio Tinto (ASX:RIO) recorded losses of 2.3% and 2.4%, respectively. Energy stocks (.AXEJ) lost as much as 3.2%, reaching their lowest point since December 2021, driven by a drop in oil prices.

In addition, healthcare stocks (.AXHJ) faced declines of up to 2.2%, particularly companies like Fisher & Paykel Healthcare (ASX:FPH) and Cochlear (ASX:COH), which warned of potential earnings hits due to the tariffs. Meanwhile, Australian beef exporters, including Elders (ASX:ELD) and Australian Agricultural Company (ASX:AAC), lost up to 3.9% amid concerns over possible trade restrictions on Australian beef.

As the trade dispute continues to unfold, markets will likely remain sensitive to further developments.