Australian shares have have plunged into correction territory, as Donald Trump's tariffs pour fuel on the embers of an increasingly likely global economic slowdown.
The benchmark S&P/ASX200 index was down 103.9 points, or 1.32 per cent, to 7786.2, as it grinded towards the close on Wednesday, wiping $34 billion from the top 200's $2.6 trillion market cap.
The broader All Ordinaries index gave up 100.8 points, or 1.24 per cent, to 8002.6 points, its lowest level since August 2024.
The falls followed an overnight sell-off of US equities, with the S&P500 down about 9 per cent from its all-time high and the tech-heavy Nasdaq, which has led US market growth in recent years, down more than 12 per cent since peaking in mid-February.
"So all this sentiment really is around what's happening in the United States," CommSec chief economist Ryan Felsman told AAP.
"And last night was another example whereby we saw the US share market under pressure around concerns about a potential economic slowdown and tariffs, so a bit of a growth scare at the moment around the trade policy situation."
The ASX200 is also in correction territory, after 10 per cent of its value was wiped in weeks amid growing fears of a global downturn and as US tariffs on steel and aluminium were imposed without exceptions on Wednesday.
The tariffs will affect about 10 per cent of Australian steel exports, but broader cost pressures on China - already grappling with its own economic challenges - are weighing on demand expectations for Australia's biggest trading partner.
All but one of 11 ASX sectors closed in the red, with utilities eking out a 0.2 per cent gain, as consumer discretionary stocks fell two per cent and financials, materials, industrials, energy stocks, health care and IT stocks all lost more than one per cent each.
The big four banks weighed heavily on the index as financials slid by 1.6 per cent, with CBA down 1.4 per cent to $144.80, its lowest price in more than four months.
Mining giants BHP and Rio Tinto were both down 1.8 per cent, to $38.95 and $117.23 respectively. Rio has announced plans to raise $US9 billion ($A$14.3 billion) in bonds to cover its Arcadium Lithium acquisition.
Kmart and Bunnings owner Wesfarmers slumped 2.6 per cent to $69.66, dragging consumer discretionary stocks to a 2 per cent drop, the worst sector performance of the day.
There could be more US-led volatility ahead this week, with US inflation and jobs data and quarterly earnings from creative software giant Adobe due overnight.
The Australian Dollar was buying 62.93 US cents, up slightly from 62.68 US cents at 5pm Tuesday.
ON THE ASX:
* The benchmark S&P/ASX200 index on Wednesday fell 103.9 points on Tuesday, or 1.32 per cent, to 7786.2.
* The broader All Ordinaries was down 100.8 points, or 1.24 per cent, to 8002.6.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 62.93 US cents, up from 62.68 US cents at 5pm AEDT on Tuesday
* 93.15 Japanese yen, from 92.29 yen
* 57.71 euro cents, from 57.82 euro cents
* 48.66 British pence, from 48.67 pence
* 110.26 NZ cents, from 110.32 NZ cents
