Fears of $114 billion ASX wipeout today as tariffs fallout continues

There are fears of a further wipeout when the Australian Stock Exchange opens today, after China retaliated against US President Donald Trump's global import tariffs.

The Australian Financial Review says more than $114 billion could be lost today, amid concerns the US could be headed for a recession.

On Friday, Australian shares closed with a $56.6 billion loss, the largest in eight months, following the Trump administration's tariffs announcement last week.

READ MORE: Bailed underworld figure Tony Mokbel attends church on third day of freedom

The S&P/ASX 200 Index fell 2.4 per cent, or by 191.9 points, to 7667.8 points at close.

Australia's US exports, which are now subject to a broad 10 per cent tariff, only make up a small amount - about four per cent - of Australia's export total.

But fears of an escalating US trade war with China, Australia's largest trading partner, have hit the stock market hard.

READ MORE: Man charged after allegedly trying to open emergency exit door mid-flight

China has retaliated after the White House imposed a 34 per cent tariff on imports last week, on top of an existing 20 per cent levy.

Beijing has now slapped its own 34 per cent tariff on goods arriving from the US.

Other nations and entities including US allies India, South Korea, and the European Union, have pledged to also take some kind of retaliatory action.

READ MORE: Young women leading change in workplace culture, expert says

Australian Prime Minister Anthony Albanese has pledged to keep US tariffs off the table but also has refused to budge on what US lobbyists have claimed are trade barriers.

These include Australia's strict biosecurity laws, which by default limit the importation of US beef, and the cheaper medicines provided by the Pharmaceutical Benefits Scheme.

The White House said overnight (Sunday local time) that more than 50 countries had made contact to begin negotiations over the tariffs, according to the Associated Press.

DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.

from 9News https://ift.tt/7Tn6LgU
via IFTTT