Australian Shares Slip into Correction Territory Amid U.S. Tariff Concerns
Sydney, March 12: Australian shares extended losses on Wednesday, briefly entering correction territory as investor sentiment took a hit following reports that the White House had denied Australia an exemption from U.S. steel and aluminium tariffs.
The S&P/ASX 200 index fell 1.2% to 7,793.6 as of 0001 GMT, after plunging as much as 1.6% earlier in the session. The index is now down nearly 10% from its all-time high on February 14, meeting the criteria for a market correction.
White House Rejects Australian Exemption
According to local media reports, White House spokeswoman Karoline Leavitt confirmed that Australia will not be exempt from the steel and aluminium tariffs that the Trump administration plans to impose on other countries.
Back in February, former President Donald Trump had agreed to consider exempting Australia, citing the U.S. trade surplus with the country. However, recent reports indicate that the administration ultimately decided against it.
Global Market Impact
The U.S. market also faced significant sell-offs overnight, as Trump doubled tariffs on Canadian steel and aluminium products to 50%, further fueling concerns about trade tensions.
Sectoral Impact in Australia
• Real estate stocks in Sydney fell 1.5%, reaching their lowest level since July 2, 2024.
• Broader market sentiment remains weak, with investors cautious about the economic fallout from trade disputes.
Looking Ahead
As global trade tensions escalate, Australian equities may continue to experience volatility. Analysts suggest that investors should brace for further downside risks if trade relations between the U.S. and key allies deteriorate further.
