FX.co ★ Australian Shares Slip on Trump’s New Tariffs

The S&P/ASX 200 declined by 0.2% to fall below 8,760 on Friday, erasing gains from the previous session. This downturn was prompted by U.S. President Trump's declaration regarding the implementation of new tariffs. Starting October 1st, the United States is set to impose a 50% tariff on kitchen cabinets and bathroom vanities, alongside a 30% tariff on upholstered furniture and a 25% tariff on heavy trucks. Furthermore, Trump disclosed plans for a 100% tariff on branded and patented pharmaceuticals, except for companies that are already in the process of establishing drug manufacturing facilities within the U.S. In Sydney, the healthcare sector experienced notable declines following these announcements, with industry leaders CSL and Telix Pharmaceuticals each falling nearly 3%. Additionally, the technology sector continued its downward trend, with significant losses for companies like Wisetech (-2.8%) and Xero (-1.5%). This was in alignment with Wall Street's tech shares, which faced their third consecutive day of declines amid increasing yields. Conversely, major mining companies provided some stability, rebounding by 0.8% due to rising commodity prices. Throughout the week, the index is expected to record its fourth consecutive weekly loss, partly influenced by reduced expectations for monetary policy easing by the Reserve Bank of Australia (RBA).