Australian shares are set to open lower Wednesday as markets prepare for the implementation of US tariffs, with the Trump administration and China both refusing to back down from the trade war.

In macroeconomic news, the final building approvals data for February is due for release at 11:30 am Sydney time.

Wall Street retreated further on Tuesday, with the Nasdaq Composite shedding 2.2%, while the S&P 500 and the Dow Jones Industrial Average fell 1.6% and 0.8%, respectively.

The US is set to impose its sweeping tariffs on dozens of countries on Wednesday, including the 104% levies on Chinese goods after Beijing refused to withdraw its retaliation. The Trump administration is reportedly preparing negotiations with its trade allies on potentially removing or eliminating the tariffs, Bloomberg reported Tuesday.

In corporate news, BHP Group (ASX:BHP) sacked the contractors tasked to rehabilitate its Peak Downs, Saraji, and Caval Ridge coal mines in Queensland in a move that coincided with a separate probe into alleged fraud, The Australian reported Tuesday.

Woolworths Group's (ASX:WOW) health retail unit, Healthylife, led a AU$10 million series A investment round in telehealth provider Hola Health, backed by investors including M8 Ventures and FundWA, according to a Tuesday statement by Hola.

Australia's benchmark index rose 2.3%, or 166.70 points, to close at 7,510 on Tuesday.