Australian shares dipped slightly on Monday, following a negative lead from Wall Street after US President Donald Trump announced he would double tariffs on steel and aluminium.
The ASX 200 index dropped 20.60 points, or 0.24%, closing at 8,414.10.
The broader All Ordinaries index also declined, falling 22.80 points, or 0.26%, to 8,637.50.
Meanwhile, the Australian dollar ended higher, trading at 64.68 US cents.
On an overall weak day for the market, eight out of 11 sectors pulled the index down, with telecommunications, industrials, and consumer staples among the few sectors to gain. All three major iron ore miners fell, with BHP down 1.23% to $37.78, Rio Tinto sliding 1.70% to $110.75, and Fortescue Metals dropping 2.53% to $15.
The big four banks had a mixed performance: CBA rose 0.27% to $176.42, the only major bank to gain, while Westpac fell 1.17% to $32.18, NAB declined 0.68% to $37.74, and ANZ dropped 0.21% to $28.98.
Despite crude oil prices rising, petroleum companies struggled, with Ampol falling 0.74% to $25.34, Woodside down 1.12% to $22, and Santos slipping 1.52% to $6.49.
US futures dropped during Monday’s trading after President Trump announced he would double tariffs on steel and aluminium starting Wednesday.
IG market analyst Tony Sycamore said the Australian market had performed “reasonably well” despite several negative factors affecting the ASX 200, including the tariff increase by President Trump.
“The addition of a 25 to 50 percent tariff on steel and aluminium exports clearly impacted sentiment,” he explained.
Sycamore also highlighted Trump’s “big beautiful bill,” which proposes extending tax cuts from 2017 while raising the debt ceiling and increasing spending on border security and the military.
“We must keep in mind that revenue needs to rise since Trump’s bill is before the Senate and he will want it passed, which means revenue gains will likely come from new tariffs,” he said.
He also mentioned ongoing military tensions in the Middle East and the Ukraine-Russia conflict as contributors to global uncertainty.
In company news, Brickworks and Washington H Soul Patts were the top performers on the ASX.
Shares of Soul Patts surged 16.44% to $43, while Brickworks soared 27.59% to $35.10 following the announcement of a $14 billion merger between the two companies.
BlueScope Steel also jumped 4.4% to $23.75 after Trump’s tariff announcement, with the market viewing the company as a key beneficiary since about half its revenue comes from US operations.
