By Roshan Thomas

April 4 (Reuters) - Australian shares slipped to their lowest in eight months on Friday as U.S. President Donald Trump's punitive tariff salvos on major trading partners triggered a flight to safe-haven assets.

The S&P/ASX 200 index .AXJO plunged 2.4% to finish at 7,667.80 points, down 11% from its mid-February all-time high. The benchmark fell 1.5% for the week, marking its worst performance since the week ending March 14.

Trump's steep tariffs have triggered a sell-off in stocks across the globe. China, Australia's largest trading partner, is now subject to a baseline tariff of 34%, in addition to the 20% tariff imposed by Trump earlier this year.

The tariffs don't have a direct impact on Australia, but threaten economic growth, said Shane Oliver, Chief Economist and Head of Investment Strategy at AMP.

Less exports "add to the case for rate cuts in Australia", he said.

The Reserve Bank of Australia $(RBA)$ which held its cash rate steady at 4.10% this week, will meet next in May.

"The RBA must be thinking cuts now. The only conclusion you can draw from this war on trade is that it is bad for everyone", said Henry Jennings, senior market analyst at Marcus Today.

Energy stocks .AXEJ led the fall by diving 8%, their lowest closing level since November 2020. Oil prices fell over 6%. O/R

Shares of Woodside WDS.AX and Santos STO.AX were both down over 9%.

Miners .AXMM lost 1.1%, while banks .AXFJ were down 2.8%.

Technology stocks .AXIJ tracked their overseas peers, ending the day 6.4% lower. .N

Meanwhile, consumer staples .AXSJ rose 2.4% as investors moved to safe-haven assets. Shares of supermarket retailers Woolworths WOW.AX and Coles COL.AX rose 3.4% and 4.1% each.

"We're seeing a bit of a flight to safety, I guess flight to defensive sectors", AMP's Oliver said.

New Zealand's S&P/NZX 50 index .NZ50 fell 0.9% to 12,225.28 points. Investors await the Reserve Bank of New Zealand's monetary policy decision, due on April 9. A Reuters poll forecasts a 25 basis point interest rate cut.

(Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank Dhaniwala)

((Roshan.Thomas@thomsonreuters.com))

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