The ASX has tumbled a further 1.31% today (12 March) after US President Donald Trump announced hikes to tariffs on Canadian steel and aluminium.
The S&P/ASX 200 fell 103.1 points to 7,787 points, as of 10.30am AEDT. Nine of the 11 sectors started the session lower.
The Industrials sector was down 0.43%, materials retreated 0.32% and energy edged back 0.05%.
Trump stated overnight that tariffs on Canadian steel and aluminium will double to 50% as of 12 March US time.
ANZ Pacific Economist Kishti Sen says the additional tariffs are in response to Canada’s Ontario province placing a 25% tariff on electricity exports to the US.
“Ontario’s tariffs are expected to raise electricity prices for consumers in New York, Michigan and Minnesota,” Sen notes.
“President Trump also stated his intention to declare a national emergency on electricity within these affected areas. He flagged that further increased tariffs are coming on 2 April, specifically tariffs on cars, if Canada does not rollback its tariffs.”
Meanwhile, a weaker US dollar and improved risk appetite have lifted commodities markets, but continued concerns over a global trade war limited the rise.
Copper advanced 1.4% overnight to US$9,663 ($15,347) per tonne, while zinc rose 2% to US$2,913 per tonne.
Safehaven demand for gold continued, with the precious metal climbing 0.8% overnight to US$2,921 an ounce.
“Gold rallied as traders sought safety amid rising concerns of a global trade war,” Sen says. “This was aided by increasing talk of a recession in the US.”
The miners dominated the top movers, led by uranium explorer Deep Yellow (ASX:DYL) with a 4.79% rise to $0.99 just after the opening bell.
Nickel Industries (ASX:NIC) staged a partial recovery, adding back 3.31% to trade at $0.625 after further clarifying yesterday’s (11 March) news the Indonesian Government is proposing to increase royalties for miners across multiple commodities, including nickel.
The company is currently subject to a 10% royalty on its nickel ore sales (both saprolite and limonite).
The proposed royalties are between 14% and 19%, depending on the prevailing nickel price at the time.
Nickel Industries says based on the Hengjaya Mine’s sales revenue of US$205 million in 2024, if the proposed royalty increases were legislated, the royalties paid would have increased by about US$8 million.
The company adds that public consultation is expected to take three to six months and there is no guarantee that the proposed royalties will be implemented.
Gold miners Regis Resources (ASX:RRL), Westgold Resources (ASX:WGX) and Perseus Mining (ASX:PRU) rounded out the top five early in the trading session.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
