The Australian stock market experienced a significant decline after reports surfaced that US President Donald Trump would be imposing a 25 per cent tariff on all steel and aluminum imports, potentially affecting shipments from Australia.
Shortly after opening, the Australian Stock Exchange (ASX) dropped by 0.65 per cent, losing 55 points in response to the news.
During his flight from Florida to New Orleans to attend the Super Bowl, Trump informed reporters that any steel entering the US would be subjected to the 25 per cent tariff.
Trump previously announced tariffs on steel and aluminium during his previous term as president in 2018,
Australia was exempt from the list of countries affected after negotiations between Trump and former Prime Minister Malcolm Turnbull.
Trump’s comments are the latest example of his willingness to threaten and impose import taxes.
These tariffs are being implemented much earlier in Trump’s presidency compared to his previous tenure, where he focused on tax reductions and deregulation initiatives.
Trump has alternately said he sees import taxes as tools to force concessions on issues such as immigration, but also as a source of revenue to help close the government’s budget deficit.
– Reported with Associated Press
