Australian shares fell after President Trump's new tariffs on Chinese imports heightened trade tensions, and triggered a global equities sell-off.

The S&P/ASX 200 fell 1.2% or 95.8 points to close at 8,172.4.

On Thursday, Trump imposed an additional 10% tariff on China, holding the country responsible for the continued drug flows from North America, Bloomberg reported.

The move, which will take the average tariff of Chinese goods to the US to about 33%, has led investors to reassess tariff risks, with markets uncertain whether it's a negotiation tactic or a definitive action, the report said.

On the domestic front, Australia's total credit rose 0.5% month on month in January, following a 0.6% increase in December 2024, data from the Reserve Bank of Australia showed.

In company news, Endeavour Group (ASX:EDV) reported that its earnings per diluted share in the fiscal first half fell to AU$0.167 from AU$0.196 a year earlier. Shares of the company fell past 7% at market close.

TPG Telecom (ASX:TPG) reported a 2024 loss per diluted share of AU$0.058, compared with earnings per diluted share of AU$0.026 in 2023. Shares of the company rose past 2% at market close.

Lastly, The Star Entertainment Group (ASX:SGR) confirmed the company is exploring "potential" opportunities that might increase its liquidity position and anticipates receiving one or more proposals on Friday. Shares of the company fell past 15% at market close and earlier reached an all-time low.