ASX Daily Market Recap: From Panic to Partial Recovery - 3rd April 25

Good Evening,

Welcome to Equity Espresso’s Daily Market Recap. Trump's tariff package landed with all the subtlety of a sledgehammer today, sending markets into a tailspin before regaining some altitude. We get you caught up on all the news you might have missed. Let’s jump in.

Local Market

Markets tanked in early trade, with the S&P/ASX200 index down by as much as 166 pts before gradually recovering as the session progressed to finish 74.8 pts. (-0.94%) lower. Global markets tumbled after a wave of U.S. tariff announcements heightened recession concerns both domestically and across international economies. Investors received the clarity they sought but were disappointed by what they discovered. ASX-listed companies emerged largely unscathed from the tariff sanctions, though a small handful expected negative impacts.

The sanctions were announced after U.S. stock markets closed, sending futures markets lower for Thursday's Wall Street session before rebounding throughout the day, helping lift our market from its early slump.

Some of Australia's large multinational companies felt the pinch, particularly those with significant sales exposure to the United States. Ansell (-14.34%) experienced one of the largest declines, with approximately 45% of its revenue coming from North America. Breville (-4.97%) dropped after saying it expects cost increases in FY26. Cettire (-14.47%) cautioned investors it might need to raise prices, as roughly 41% of its merchandise is manufactured in the E.U. and distributed to U.S. customers.

Some other companies with tariff-related statements today were CSL, Cochlear, Treasury Wines and Fisher & Paykel.
Get the full rundown in our ASX Company Section later in the newsletter (pro).

There were some bright spots, with investors flocking to the safety of the supermarket giants, with the Staples (+1.27%) sector the leader of the three that finished higher. Woolworths (+1.90%) and Coles (+2.11%) both ended the day higher.

It was a busy day for broker rating movements. Ord Minnett downgraded six mining companies after reducing its commodity forecasts (excl. gold), citing concerns over Chinese steel demand and U.S tariff implications. Get the full rundown in our Broker Movement section later in the newsletter (pro).

Tariff Update

The global tariff sanctions included a baseline 10% wide-spread tariff for all countries from Australia to China and even little ol Norfolk Island. Additionally, “reciprocal tariffs” were added for several nations, which the White House rationalised as around half the tariffs charged to the U.S. (which includes currency manipulation and trade barriers).

Major nations like China (34%), The European Union (20%), Japan (24%) and India (26%) saw some of the biggest reciprocal tariffs levied against them. Vietnam (46%) has reportedly started cutting its tariffs on several U.S. products, including LNG and cars.

Some items have been excluded from the baseline 10% global tariff, including pharmaceuticals, oil and gas, semiconductors, gold, copper, and certain unavailable critical minerals. Also worth noting is the duty-free exemption for imports under $800 from China and Hong Kong, ending May 2, 2025. These items will face duties of 30% or $25 per shipment, rising to $50 after June 1. The de minimis rule remains for other countries but may be extended as collection systems are established.

Check out today’s deep-dive later in the newsletter for a full rundown of the tariff news. (pro).

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DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make economic decisions. We strongly recommend conducting your own research before making any investment.