The Australian stock market was caught in the global crossfire on Monday as sweeping reciprocal tariffs announced by U.S. President Donald Trump sparked a worldwide selloff. The S&P/ASX 200 Index fell 4.2% to close at 7,343.3, marking its lowest level in over 100 trading sessions.
Investor sentiment across the globe soured after Trump’s aggressive tariff announcement on Wednesday, accusing key trading partners of exploiting the U.S. economy. The fallout extended beyond Wall Street, where the S&P 500 came close to bear market territory, down 17.5% from its peak, while the tech-heavy Nasdaq 100 officially entered a bear market after tumbling over 6% on Friday.
In Australia, all 11 market sectors closed in the red. Heavyweight sectors like energy, mining, banking, and consumer discretionary took the worst hit, as billions were wiped off the market capitalisation of major ASX-listed companies. The rout also poses significant risks to superannuation funds, which remain heavily exposed to both domestic and global equities.
Despite growing panic among investors, Trump doubled down on his tariff policy, stating via Truth Social that trading partners had treated the U.S. like a “dumb and helpless whipping post” — rhetoric that has further unsettled global financial markets.
With no immediate signs of a policy reversal, traders and fund managers remain on edge, questioning how deep the correction could go as recession fears intensify.
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