‘Rollercoaster ride’: ASX chaos continues in wake of Trump tariff chaos

The ASX 200 continued its sell-off during early trading on Wednesday, following the latest tit-for-tat tariff measure.

Investors and everyday Aussies, through their superannuation accounts, have been smashed for the third time in four days, with more than $50bn wiped off the ASX in just minutes.

The ASX plummeted139.70 points or 1.86 per cent to 7370.30 on the opening bell on Wednesday.

In a turbulent week, the ASX fell more than 4 per cent on Monday before bouncing 2.27 per cent on Tuesday to have its best day since November 2022.

The Aussie dollar is again trading under 60 US cents.

It was a sea of red on the ASX on the opening bell thanks to US President Donald Trump’s tariff policy. Picture: NewsWire / AP Pool

The market has been largely in free fall over the last week after US President Donald Trump implemented his tariff policy.

Mr Trump’s announcement of reciprocal tariff policies, which added between 10 per cent and 50 per cent on goods imported to the US, sent shockwaves around the world.

China was hit with a 34 per cent tariff on “Liberation Day”, adding to 20 per cent tariffs already in force.

They hit back at the US policy with a 34 per cent tariff of their own.

Overnight, Mr Trump announced an extra 50 per cent tariff against China, bringing total penalties against the nation to 104 per cent.

China has vowed “to fight until the end” on tariffs, leading to further uncertainty in the market.

Mr Trump later signed an executive order tripling the previously announced tariff rates on low-value packages exported to the US from China.

Prior to Mr Trump’s move, shipments worth less than $800 had been exempt from tariffs, helping the likes of mega retailers Shein and Temu avoid the first round of tariffs.

Mr Trump set the initial tariff rate for goods under $US800 at 30 per cent or $25, starting from May 2.

The new rate will be 90 per cent of the shipment’s value or $75, rising to $150 after June 1.

Mr Trump says his administration is “doing very well” in the early stages of negotiations between countries who will soon face steep tariffs on their exports to the US.

“I call them tailored deals, not off the rack,” Mr Trump said.

“These are tailored, highly tailored deals.”

The ASX has slumped on the back of Mr Trump’s latest China tariff. Picture NewsWire/ Gaye Gerard

The latest tariffs on China wiped out a rally on Wall Street, where the S&P 500 briefly rose more than 4 per cent before slumping 1.57 per cent on the close.

The Dow Jones Industrial Average dropped 320.01 points, or 0.84 per cent, and closed at 37,645.59, bringing its four-day loss on tariff angst to more than 4500 points, while the tech-heavy Nasdaq Composite slumped 2.15 per cent and has now dropped 13 per cent in four days.

Asian markets are tipped to plunge again when they open later in the day.

US President Donald Trump shows the seriousness of his tariff plans. Picture: Supplied

Capital.com senior financial market analyst Kyle Rodda said the rollercoaster for investors wasn’t over.

“The reason why the moves are so pronounced is the incoherence of the US’s trade position. Some members of the administration are saying the tariffs are here to stay and are non-negotiable,” he said.

“Others, including at times Trump himself, suggest negotiations are about to get under way and there are deals on the table.”

Schroders head of strategic research Duncan Lamont urged investors to stay calm and to stick with their plans.

“Crises happen. The stock market falls 20 per cent once every four years, on average, 10 per cent most years. It’s easy to forget this. Even if you’re a seasoned investor, how much comfort does that give you when you’re in the thick of it,” he said.

“The simple reality is that the stock market has tremendous power to help grow wealth in the long run but short-term volatility and risk of falls are the price of the entry ticket.”