• ASX drops heavily as Trump’s tariffs spark chaos
• Energy stocks hit hard
• Breville and Ansell scramble to neutralise tariffs

The ASX copped another big drop on Friday, tumbling 2.44% as global markets went into freefall. For the week, the ASX200 index was down nearly 4%, its worst since 2022.

With the US unleashing a raft of new tariffs, investor nerves were rattled, and the fear of a global recession sent stocks plummeting.

Overnight, US markets had their biggest fall since the pandemic, with $US2.5 trillion wiped off stocks.

Wall Street’s losses spilled into Asian markets today, with Japan’s Nikkei hitting its lowest point since August:

Trump’s announcement of a 10% baseline tariff on all countries, which take effect on Saturday, have already sparked threats of retaliation from China and the EU, heightening the risk of a trade war.

Experts warn this could lead to long-term market volatility.

The next few months will be crucial, with everyone waiting to see if negotiations can help ease the tension.

Back home, bond traders began pricing in interest rate cuts from the RBA, with HSBC even forecasting a rate reduction next month.

Shares in Woodside Energy Group (ASX:WDS) and Santos (ASX:STO) – the two biggest energy plays on the ASX – sank around 8% each, as Brent crude dipped below US$70 per barrel.

Even gold, typically a safe haven, got caught up in the sell-off as investors scrambled for cash.

Meanwhile, in the midst of the chaos, the defensive sectors managed to hold steady, with supermarket stocks like Coles Group (ASX:COL) and Woolworths (ASX:WOW) rising by over 3%.

This is how things stood leading up to today’s close:

Large cap companies hit by US tariffs are doing their best to calm investors.

Appliances maker Breville (ASX:BRG), which makes around 90% of its products in China and sells about 45% of them in the US, told investors that it’s been working on diversifying its manufacturing base.

Breville said it doesn’t expect the US tariffs to hit its FY25 results much, keeping its EBIT growth forecast at 5-10%, but they may push costs up for FY26. Shares were pummelled 10%.

On a more positive note, medical glove maker Ansell (ASX:ANN) , the protective gear maker, saw its stock rise by 4% after it promised to fully offset the impact of the tariffs through price increases.

ASX SMALL CAP LEADERS

Today’s best performing small cap stocks:

Orthocell (ASX:OCC) has come out of a trading halt with a groundbreaking announcement.

The company’s flagship nerve repair product, Remplir, has just snagged US FDA 510(k) clearance, which will open the door to a massive US market worth around $1.6 billion. Remplir is a collagen wrap used in nerve repair surgery to help surgeons fix damaged nerves.

With this approval, Orthocell is now ready to roll out sales in the US, and the company’s been preparing for this moment by ramping up production. Its Perth facility can produce 100,000 units a year, and with $32 million in cash reserves, the biotech is fully funded for the launch.

Read more about it here > Level achieved: Orthocell gains FDA approval for flagship nerve repair product

Blue Energy (ASX:BLU) has scored a win in the Land Court of Queensland, securing an amended Environmental Authority (EA) for its gas development project in the Bowen Basin. The court decision follows an appeal by Environmental Advocacy in Central Queensland, challenging the original EA granted by the Queensland Government. The case, which has been ongoing since July 2023, is now resolved, with the court adding new conditions related to water, flora, and fauna. This clears the way for Blue to continue its gas development, which it said is crucial for East Coast gas supply and local industries.

Blue Star Helium (ASX:BNL) has successfully drilled the intermediate hole section of the Jackson 29 well at its Galactica project in Colorado. The casing is now set and cementing is underway. Once the cement bond is confirmed, Blue Star will continue drilling into the Lyons formation, and complete the well for production testing and future tie-in to facilities.

Synlait Milk (ASX:SM1) shares kept climbing after yesterday’s announcement, as the company reached a key milestone in locking down its future milk supply. Most of the cease notices, which were formal warnings from farmers to stop supplying milk, have been lifted, showing strong support and growing confidence in Synlait after its return to profitability. With plenty of interest from new farmers, Synlait said it’s on track to secure enough milk for FY26 and FY27.

ASX SMALL CAP LAGGARDS

Today’s worst performing small cap stocks:

Tourism Holdings (ASX:THL) fell 5% after warning that the new US tariffs would further hit its already sluggish sales. The company’s seeing a slowdown in international bookings for RV rentals, with consumer sentiment for US travel dropping. While the company is still figuring out the full impact, especially with potential retaliatory tariffs from Canada, it’s keeping a close eye on the situation and said it expects more clarity by Q4 FY25.

IN CASE YOU MISSED IT

QMines (ASX:QML) has wrapped up diamond drilling at the Mt Chalmers copper and gold project in Queensland, with visual examination of the drill core indicating the mineralisation is of high quality and consistency, although formal assays will be required to understand the true grade. The rig will now move to the Develin Creek project, which recently produced a broad copper intersection of 114 metres at 1.64% from just 11 metres below surface.

With nine of the top 10 antimony drill hits in the US in hand, Felix Gold (ASX:FXG) could soon hold the first domestic source of antimony in America at the Treasure Creek project, at a time when the defence-relevant commodity is skyrocketing in price, increasing six-fold in just over a year via a combination of Chinese export restrictions and global political instability.

Strata Minerals (ASX:SMX) has sought to repeat Spectrum Metal’s exploration success at the Penny South gold project, looking to mirror strong results from an adjacent project that saw Spectrum swiftly acquired by $3 billion gold miner Ramelius Resources. With results from a 2,583-metre and 12-hole drilling program in hand, Strata is planning a deeper diamond drilling campaign just 500 metres from the high-grade gold mine itself.

In another story of antimony success, Resolution Minerals (ASX:RML) has identified almost 800 historical workings, 33 shafts and 16 adits at the Drake East project in NSW. The prospective area, which previously produced results of up to 5.72% antimony, 60.9 g/t gold and 124 g/t silver, is believed to be part of a large antimony-gold mineral field with strong evidence of regional antimony potential.

At Stockhead, we tell it like it is. While Felix Gold, Strata Minerals and Resolution Minerals are Stockhead advertisers, they did not sponsor this article. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.