| Trump announced new global “Liberation Day” tariffs from the White House. Over 60 countries are affected, with tariffs ranging from 10% to 49%. Equities across Asia are expected to tumble on the news while US futures turned sharply lower after briefly turning positive. Nasdaq futures dropped more than 4.2 per cent, while contracts for the S&P 500 were down more than 3 per cent near 9.20am. In the US, the magnificent seven tumbled in after-hours trading, with Tesla and Apple slumping more than 6 per cent. Nvidia, Amazon and Meta all dropped more than 4 per cent. Treasury Wine Estates has reassured investors of “minimal” impact to its bottom line from new US tariffs owing to just 15 per cent of wines from American business being imported from outside the US. Fisher & Paykel has warned that new US tariffs will increase its costs in the 2026 financial year and affect its ability to hit its gross margin targets. Hearing implant manufacturer Cochlear said it is awaiting clarification on tariff particulars before updating the market on any impact of the US’ 10 per cent tariff on its exports to that market. North America is among Cochlear’s major exports markets, alongside Europe. Australia will face a 10% baseline tariff on exports to the U.S. Australia avoided higher, country-specific tariffs imposed on nations like: Cambodia: 49% Vietnam: 46% China: 34% Japan: 24%. In 2024, Australia exported $23 billion worth of goods to the U.S. Trump singled out Australian beef producers, raising concerns over potential additional tariffs. Australian beef exports to the U.S. totaled $3.3 billion last year. Despite the tariff, Australia was not listed among the countries receiving punitive, targeted rates. For further insight on Frais Capital and our wealth management services, go to Our Services | Frais Capital and for up to the minute markets updates, tune into ABC 774AM Breakfast Radio 6:35am weekdays for markets updates. https://www.afr.com/world/north-america/trump-set-to-impose-global-reciprocal-tariffs-20250403-p5lopm |
Global Trade & Markets Update
