A last-minute escalation in the trade war between the United States and China dragged the ASX into the red on Tuesday.
The S&P/ASX 200 index closed 0.1 per cent, or 5.4 points lower at 8374 points.
US President Donald Trump’s 10 per cent tariff on all imports from China came into effect late in the session, as threatened, and was quickly overtaken by Beijing retaliating with tariffs on US goods: 15 per cent on coal and liquefied natural gas and 10 per cent on oil and agricultural equipment.
The Australian dollar tumbled below US62¢ on the news. Meanwhile, Mexico and Canada earlier negotiated the postponement of Mr Trump’s proposed 25 per cent tariff on imports from both nations, facilitating a brief interval of market calm through most of the Asia trading session.
Source: https://www.afr.com/markets/equity-markets/s-and-p-500-pares-loss-as-mexico-gets-one-month-tariff-reprieve-20250204-p5l9ae