ASX Plunges on Trump's China Tariffs, Trade War Fears

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ASX Plunges on Trump's China Tariffs, Trade War Fears
TRADE WARTARIFFSASX
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The Australian stock market suffered its biggest one-day loss in five months on Monday, driven by Donald Trump's decision to impose tariffs on Chinese imports and escalating concerns about a global trade war. The S&P/ASX 200 index fell 1.8 percent, with all 11 sectors recording losses. Investors reacted to rising uncertainty about the impact of tariffs on Australian companies, leading to a sell-off in various sectors, including consumer discretionary, healthcare, and resources. The Australian dollar also sank to a five-year low against the US dollar.

Donald Trump’s decision to impose a 10 per cent tariff on imports from China, as well as concerns about a global trade war , led the ASX to its largest one-day loss in five months on Monday. The S&P/ ASX 200 fell 1.8 per cent, or 152.9 points, to 8379.4 points, having dropped as much as 2 per cent mid-session. That was the index’s largest intraday loss since September 4. All 11 sectors finished in the red, with consumer discretionary and healthcare stocks falling more than 2 per cent.

“The uncertainty today shows that for investors, things can’t be any more simple than ‘show me your earnings’ – that companies are actually delivering quality, underlying resilience and growth in margins,” he said. In Singapore, the benchmark iron ore futures contract fell more than 1 per cent on fears that tariffs would hurt demand for China’s steel. Iron ore miner Champion Iron dropped 4.5 per cent to $5.32 and Fortescue fell 4.4 per cent to $18.29. BHP fell 1.8 per cent to $39.24.

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