Australian companies listed on the ASX are preparing for potential challenges following the recent implementation of tariffs by the Trump administration. The US has imposed a 25% tariff on imports from Mexico and Canada, and a 10% tariff on Chinese goods, aiming to impact $1.4 trillion worth of goods. While Australian exports were previously exempt, the new measures threaten that exemption.
The resource sector, particularly major miners like BHP, Rio Tinto, and Fortescue, could face significant pressure due to potential reductions in global economic growth, especially if Chinese demand for Australian commodities declines. This scenario could also weaken the Australian dollar.
Investors are expressing concern about the long-term implications, particularly for businesses heavily reliant on international trade. The uncertainty surrounding these trade policies is leading to fluctuating share prices and subdued market sentiment. Economists highlight the broader risks to the global economy and stress the need for open international trade.