Investing.com-- Australia’s benchmark stock index is teetering on the edge of correction territory, having declined approximately 9.8% from its record high reached last month, battered by escalating trade tensions from the imposition of U.S. President Donald Trump’s tariffs.
Australia’s S&P/ASX 200 index edged down 0.2% to 7,772.5 points as of 03:20 GMT, bringing its total decline to 9.8% since reaching a record high on February 14.
This positions the benchmark index perilously close to correction territory, typically defined as a 10% fall from a recent peak.
The index briefly entered the correction phase on Wednesday, falling as much as 1.6% to its lowest level since early September 2024, but pared some losses on Thursday.
S&P/ASX 200 was on track for its fourth consecutive weekly decline, and has fallen nearly 5% in March, after dropping 4.2% in Feb.
The recent downturn is largely attributed to escalating trade tensions following U.S. President Donald Trump’s decision to impose 25% tariffs on steel and aluminum imports, effective Wednesday.
Contrary to earlier expectations, Australia was not granted an exemption from these tariffs.
Prime Minister Anthony Albanese criticized the move as "entirely unjustified" and "not a friendly act," expressing disappointment over the lack of consideration for the longstanding alliance between the two nations.
The tariffs have raised concerns about increased costs for Australian exporters and potential disruptions to the domestic economy.