One hundred and sixty billion dollars has been lost in the Australian share market this morning due to Trump’s tariffs, as investors fear a trade war.

The benchmark ASX 200 index fell by more than six percent at the opening of the market, after the Australian dollar fell below 60 US cents. This is the first time since the pandemic the Australian dollar has fallen to such an extent.

This comes after Trump announced multiple tariffs in his ‘Liberation Day’ speech on Friday.

Over the weekend, China, Australia’s biggest trade partner, retaliated by adding their own 34 percent tariff on goods coming from America. This has left Australian traders worried about a trade war.

While Trump has claimed “a lot of Europeans and Asians” are “dying to make a deal”, multiple other countries have now also decided to take action, including South Korea, India and The European Union.

Only around four percent of Australian goods come from America, resulting in American citizens being the ones most affected by Trump’s new tariffs.

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