FX.co ★ ASX 200 Drops as Tariff Risks Mount

The S&P/ASX 200 experienced a decline of 0.9% to close at 8,662 on Friday, extending the losses from the previous session and marking a 0.1% reduction for the week, making it the second consecutive week of decline. A widespread sell-off occurred as investor risk appetite decreased following the announcement by US President Trump of new tariffs ranging from 10% to 41% on imports from several trading partners. Notably, Australia faced less severe tariffs, with Trade Minister Don Farrell confirming that the United States maintained a baseline tariff of 10% on Australian exports—the lowest among all countries—due to Australia’s ongoing trade surplus with the US being a significant factor in negotiations. Despite this, Australia was still affected by the overall risk-averse market sentiment, which contributed to the decline of the ASX. Among the major decliners were healthcare stocks, led by biotech leader CSL with a 2.6% drop, while the financial sector fell by 1.1%, with the Big Four banks experiencing declines of over 1%. Technology stocks fell by 2.3%, reflecting losses on Wall Street amid renewed scrutiny of earnings and economic data. On the economic data front, producer prices increased by 0.7% in the second quarter, which was below forecasts and supported expectations of an interest rate cut in August.