IGO Ltd (ASX:IGO) saw its stock price plummet by 5.15% during intraday trading, as the Australian lithium miner faced multiple headwinds. The sharp decline comes in the wake of Citi's decision to cut price targets for Australian lithium miners, including IGO, due to concerns over potential US reciprocal tariffs.

Citi analysts reduced IGO's price target to A$4.0 from A$5.30, citing expectations that US tariffs would be a headwind for demand. Despite the price target cut, Citi upgraded IGO's rating to "buy" from "neutral," noting that the company offers investors exposure to its low-cost Greenbushes hard rock lithium mine. The bank's outlook suggests that without meaningful development of a resilient ex-China supply chain and associated demand, lithium prices are likely to trade below long-run incentive prices in the near-to-medium term.

Adding to the downward pressure, IGO Newsearch, a subsidiary of IGO Ltd, has elected to withdraw from the Paterson Project farm-in agreement with Antipa Minerals (ASX:AZY). This decision, effective April 30, will result in Antipa retaining 100% ownership of the project. The withdrawal from this exploration opportunity may have contributed to investor concerns about IGO's growth prospects. Furthermore, the broader market sentiment was negatively impacted by the escalating China-US trade war, with Australian markets expected to open lower, tracking the global market downturn.