ASX 200 sinks on Monday after US President Donald Trump vows to double steel tariffs, sends mixed messages on China trade war
The index is down about 0.1 per cent in the first 30 minutes of trading with aluminium producer Alcoa Corporation falling 3.5 per cent, Capstone Copper sliding 3.3 per cent and Clarity Pharmaceuticals shedding 3.5 per cent.
The biggest mover on Monday is Australian brick maker Brickworks, up 13.5 per cent, after it revealed a $14b merger with investment firm Soul Patts.
It comes as all eyes remain on Trump's tumultuous trade war as he indicated talks with Xi Jinping could start soon despite tensions mounting.
The US President lashed out in a Truth Social post where he claimed China had 'totally violated its agreement' on tariffs just two weeks after striking a deal.
'I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation,' Trump posted on Friday morning.
'Everybody was happy! That is the good news!!! The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.'
Trump later told reporters he was confident the pair would meet to discuss the tense trade relations between the pair.
'They violated a big part of the agreement we made, but I'm sure that I'll speak to President Xi, and hopefully we'll work that out,' Trump said.
Investors are also cautious of Trump's Saturday announcement that steel tariffs would double from 25 to 50 per cent.
Resources Minister Madeleine King said the Prime Minister will talk with Trump about his decision on the sidelines of the G7 event and put forward Australia's case for an exemption.
'We are going to continue to engage and strongly advocate for the removal of these tariffs,' Ms King said on ABC Radio National on Monday.
The S&P 500 finished flat, the Dow Jones rose 0.1 per cent and the Nasdaq sank 0.3 per cent on Friday.
London's FTSE 250 Index jumped 0.1 per cent, Germany's DAX added 0.3 per cent and the STOXX Europe 600 Index rose 0.1 per cent on Friday.
Japan's Nikkei 225 is down 1.2 per cent on Monday and South Korea's KOSPI is up 0.9 per cent.
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