Shares of Mineral Resources Ltd (MIN.AU) plummeted 5.86% in intraday trading on Wednesday, as investors reacted to Citi's downgrade of Australian lithium miners due to concerns over U.S. reciprocal tariffs. The sharp decline comes amid growing worries about the impact of these tariffs on lithium demand and pricing.

Citi analysts have cut price targets for several Australian lithium miners, including Mineral Resources. The investment bank reduced its target for MIN.AU to A$20, citing expectations that lithium prices are likely to trade below long-run incentive prices in the near-to-medium term. This bearish outlook is primarily driven by the lack of meaningful development in resilient ex-China supply chains and associated demand.

The downgrade highlights the challenges facing the lithium sector, particularly in light of potential trade tensions between the U.S. and China. While some lithium miners like Pilbara Minerals and IGO received rating upgrades to "buy" from Citi, Mineral Resources appears to be more significantly impacted by the revised outlook. This contrasts with a recent buy rating from Bell Potter, which had set a more optimistic price target of A$29.00 for Mineral Resources, highlighting the divergent views in the market regarding the company's prospects in the current economic climate.