The Australian share market experienced a significant decline following US President Donald Trump’s announcement of a 25 per cent tariff on all steel and aluminium imports, which may impact Australian exports. The Australian Stock Exchange (ASX) fell by 0.65 per cent, losing 55 points shortly after opening. Trump confirmed that both steel and aluminium would be affected during a flight to the Super Bowl, indicating plans for “reciprocal tariffs” against countries imposing duties on US goods. This follows a history of import taxes from Trump’s previous administration.
In terms of trade, Australia exported about $378 million worth of iron and steel and $503 million in aluminium to the US, highlighting the stakes involved. Notably, while BlueScope, a major steel producer with US operations, saw its stock rise by 3.46 per cent, Bisalloy Steel’s shares dipped by 5.05 per cent post-announcement.
This situation comes at a time when the Australian government has recently sent $798 million to the US as part of the AUKUS submarine deal, marking an earlier-than-expected move by Trump to implement tariffs in his new term compared to previous years, when he focused more on tax cuts and deregulation.