Donald Trump’s trade war continues to sour | Australian Markets

Donald Trump’s trade war continues to sour Australian client confidence because the US President presses forward with plans to impose tariffs on semiconductor and pharmaceutical imports.

The latest ANZ-Roy Morgan survey on Tuesday revealed Australian client confidence slumped final week, which it mentioned doubtless mirrored the more pessimistic world backdrop following the US tariff announcement on April 3.

ANZ economist Sophia Angala pointed to Reserve Bank governor Michele Bullock’s latest speech the place she mentioned the central bank was specializing in how world uncertainty may influence family and business selections domestically.

It expects the RBA to cut the money fee by 25 foundation factors at every of its May, July and August conferences this yr.

The RBA warned in its minutes from the April assembly, additionally printed on Tuesday, that a large fall in Australia’s exchange fee or main provide chain disruptions would restart inflation.

It comes because the US Commerce Department in a single day mentioned it had begun investigating the influence on national security of “imports of semiconductors and semiconductor manufacturing equipment” in addition to “prescribed drugs and pharmaceutical ingredients, together with completed drug merchandise.

The Westpac-Melbourne Institute client sentiment index final week additionally revealed deepening unease about developments overseas.

Sentiment was 10 per cent decrease amongst these surveyed after Mr Trump introduced his so-called reciprocal tariffs, in contrast with these surveyed prior.