Australian shares fell on Wednesday's close, tracking Wall Street markets, as President Trump said he was reconsidering his double tariffs threats on Canada.

The S&P/ASX 200 fell 1.3% or 103.9 points to close at 7,786.2.

President Trump appears willing to sacrifice the bull market and short-term economic growth, Bloomberg reported, adding that his rollout of tariffs over the last few weeks, led to volatility and made for a "dizzying spell" for traders.

Growing caution in the market is driving investors toward safe havens such as short-term Treasuries and stocks of utilities and consumer staples, which perform well during economic slowdowns, the report said.

On the domestic front, ANZ Research said in a note that, while Australia is unlikely to directly suffer from US tariffs, its indirect exposure to trade tensions might affect demand and overall market sentiment.

In company news, Austal (ASX:ASB) completed its institutional placement to raise AU$200 million, before costs, at AU$3.80 per share. Shares of the company fell 22% at market close.

Meteoric Resources (ASX:MEI) will have to consider international loans tied to offtake as collateral for financing due to a scarcity of funding in Brazil, Bloomberg News reported. Shares rose 2% at market close.

Lastly, Rio Tinto Group (ASX:RIO) is raising between $7 billion and $9 billion by selling US dollar bonds to pay for its $6.7 billion acquisition of Arcadium Lithium, multiple media outlets reported. Shares of the mining giant fell 2% on market close.