Australian shares closed the week lower, as concerns persisted that Thursday's tariffs will hit economic growth, extending the global selloff in stocks.

The S&P/ASX 200 Index fell 2.4% or 191.9 points to close at 7,667.8.

Economists warn that Trump's policies may drive up US prices and slow growth, potentially leading to a recession, Bloomberg reported.

"The market is giving big thumbs down to this tariff policy," said Ed Yardeni, president of Yardeni Research.

On the domestic front, Australia's seasonally adjusted household spending rose 0.2% month on month to AU$75.6 billion in February, following a 0.5% rise in January, data from the Australian Bureau of Statistics showed.

The Reserve Bank of Australia (RBA) will likely cut its key rate more than previously anticipated in response to the potential impact of American tariffs on consumer spending and business investment, ANZ Research said.

In company news, Shares of Santos (ASX:STO) fell 9%, while those of Woodside Energy Group (ASX:WDS) decreased 9% on market close after oil prices crashed in the wake of US President Donald Trump's tariff announcement and a planned output increase by the Organization of the Petroleum Exporting Countries.

Insurance Australia Group's (ASX:IAG) New Zealand unit is facing civil proceedings filed by New Zealand's Financial Markets Authority over alleged breaches of fair dealing related to its insurance products.

Ansell (ASX:ANN) plans to offset the Trump administration's new tariffs by raising its prices. Shares of the company rose past 3% at market close.