IGO LTD (IGO.AU) saw its stock price plummet by 5.15% in Wednesday's trading session, following Citi's decision to cut the company's price target amid concerns over US tariffs impacting lithium demand. The significant drop comes as part of a broader market decline triggered by escalating trade tensions between China and the United States.

Citi analysts reduced IGO's price target from A$5.30 to A$4.0, citing expectations that US reciprocal tariffs would pose a headwind for demand in the lithium sector. The investment bank warned 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. 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.

Adding to the company's woes, IGO's subsidiary, IGO Newsearch, announced its withdrawal from the Paterson Project farm-in agreement with Antipa Minerals (ASX:AZY), effective April 30. This move will result in Antipa retaining 100% ownership of the project. The broader market sentiment was also negatively impacted by news of potential new US tariffs on Chinese exports, with the S&P 500 losing 4% and the Australian market expected to open as much as 2% lower on Wednesday morning.