Australia’s stock market extended losses on March 12, 2025, with the S&P/ASX 200 index falling 1.2% to 7,793.6, briefly entering correction territory. Investor sentiment weakened after reports confirmed that the United States would not exempt Australia from steel and aluminium tariffs. The market downturn saw financial and real estate stocks decline, while gold stocks gained amid rising safe-haven demand.
Australia’s stock market faced a sharp decline on March 12, 2025, with the S&P/ASX 200 index dropping 1.2% to 7,793.6, as investor sentiment deteriorated following reports that the White House had ruled out exemptions for Australia from U.S. steel and aluminium tariffs. The benchmark index fell as much as 1.6% during the session, pushing it down by 10% from its all-time high on February 14, marking a correction phase.
The U.S. decision, which was cited by White House spokeswoman Karoline Leavitt, came after former President Donald Trump initially agreed in February to consider exempting Australia, given the U.S. trade surplus with the country. However, the final decision was made against any special exemptions. The announcement fueled concerns over global trade tensions, leading to a broader market selloff.
Market Performance
The selloff in Australia mirrored losses in U.S. markets, where major indices suffered their worst drop in months after Trump announced that tariffs on Canadian steel and aluminium would double to 50%. This heightened fears of a global trade war, impacting investor confidence worldwide.
In Sydney, New South Wales, real estate stocks fell as much as 1.5%, reaching their lowest levels since July 2, 2024. The downturn also extended to heavyweight financial stocks, which declined for the seventh consecutive session, losing up to 1.7%. The “Big Four” banks – Commonwealth Bank of Australia, Westpac, National Australia Bank, and ANZ – dropped between 1.1% and 1.9%.
Sectoral Impact
- Mining Sector:
- BHP Group, the world’s largest listed miner, fell 1.1%.
- Rio Tinto and Fortescue Metals Group declined 2.2% and 1.6%, respectively.
- Gold Stocks:
- Gold miners gained 0.8% as investors turned to safe-haven assets amid global economic concerns.
- Financials & Real Estate:
- Major banks and property stocks saw losses as uncertainty gripped the markets.
New Zealand Market Reaction
Across the Tasman Sea, New Zealand’s S&P/NZX 50 index also ended lower, slipping 0.9% to 12,305.19, tracking the broader market downturn.
Market Outlook
Analysts warn that the ongoing volatility, coupled with trade tensions, could keep Australian equities under pressure in the coming weeks. Investors remain cautious, closely watching global trade policies and central bank decisions that could further impact market direction.
