ASX Lunch Wrap: Shares free-fall on Trump's tariffs, as traders await China's 'countermeasures'

ASX crashes to four-month low after Trump’s tariffs
Oil surges, crypto plummets on trade war fears
Novonix rises as ITC backs China’s graphite dumping case

It’s a rough start to the week for the ASX200, with shares free-falling this morning, down by around 1.6% to a four-month low.

The selloff was triggered by President Trump’s sign-off on hefty tariffs over the weekend – 10% on China, 25% on Canada and Mexico – and it didn’t take long for the ripples to spread like wildfire.

Oil prices shot up as the tariffs sparked a supply crunch concern from two of the US’s top oil suppliers (Canada and Mexico). West Texas crude jumped over 2% to as high $74.30 a barrel.

The US dollar surged, while the Canadian dollar dropped to its lowest point since 2003.

In the crypto market, it was a classic “risk-off” knee-jerk reaction with Bitcoin dropping 4% and Ethereum sliding 10% in the last 24 hours. As for other “altcoins”, it’s a bloodbath right now for many/most.

“The market needs to structurally and significantly reprice the trade war risk premium,” George Saravelos, head of FX research at Deutsche Bank, wrote.

And of course, China has already warned of “corresponding countermeasures”.

“How much the market fallout continues to deteriorate depends on whether the new tariffs are quickly rescinded because an agreement is reached, or whether this devolves into a tit-for-tat cycle,” added Saxo’s Chief Macro Strategist, John J. Hardy.

Back to the ASX, all sectors opened in the red, but mining, discretionary and healthcare copped the worst of it.

In large caps news, the Australian Securities and Investments Commission (ASIC) kicked off an investigation into the ASX’s (ASX:ASX) CHESS platform failure just before Christmas, which caused a major settlement mess for a few days. ASX’s shares were down 2%.

Novonix (ASX:NVX) rose 0.5% after the US International Trade Commission (ITC) ruled that China has been undercutting the US graphite market with cheap exports.

The ruling supports Novonix’s case, filed with other US producers, against China’s unfair pricing tactics, which have been hurting the local graphite industry. As you may already know, Novonix is set to open its massive Riverside facility in Tennessee by 2026.

Meanwhile, Westgold Resources (ASX:WGX) crashed 12% after cutting its full-year production guidance as the ramp-up of its Beta Hunt and Bluebird-South Junction mines took longer than expected. Now, WGX is aiming for 330,000 to 350,000 ounces, down from the previous target of 400,000 to 420,000.

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for February 3 [intraday]:

Security	Description	Last	%	Volume	MktCap
OZM	Ozaurum Resources	0.089	147%	28,291,108	$7,099,615
HCD	Hydrocarbon Dynamics	0.003	50%	5,075,519	$2,085,683
AKN	Auking Mining Ltd	0.004	33%	252,454	$1,544,336
NES	Nelson Resources.	0.004	33%	20,000	$6,515,783
BB1	Blinklab Limited	0.340	28%	1,793,813	$16,227,582
ADD	Adavale Resource Ltd	0.003	25%	1,163,968	$4,546,558
MVP	Medical Developments	0.805	21%	715,637	$74,917,785
VFX	Visionflex Group Ltd	0.003	20%	166,700	$8,419,651
ROC	Rocketboots	0.075	19%	75,032	$7,164,543
MM8	Medallion Metals.	0.125	19%	263,427	$42,988,719
UCM	Uscom Limited	0.025	19%	50,000	$5,260,017
YOJ	Yojee Limited	0.130	18%	188,568	$30,316,424
EVR	Ev Resources Ltd	0.004	17%	1,634,603	$5,437,510
ICG	Inca Minerals Ltd	0.007	17%	1,250,000	$6,160,335
IPB	IPB Petroleum Ltd	0.007	17%	132,518	$4,238,418
PUA	Peak Minerals Ltd	0.014	17%	7,727,260	$30,625,323
CLU	Cluey Ltd	0.072	16%	18,332	$21,875,072
PLC	Premier1 Lithium Ltd	0.008	14%	51,640	$2,576,424
HPR	High Peak Royalties	0.085	13%	50,000	$15,604,479
IBX	Imagion Biosys Ltd	0.017	13%	58,823	$3,020,121

OzAurum Resources’ (ASX:OZM) shares more than doubled after hitting a new high-grade gold discovery at its Mulgabbie North Project in WA’s Eastern Goldfields. Aircore drilling nailed multiple shallow, high-grade gold zones, with standout intercepts like 20m at 3.57g/t and 10m at 6.59g/t. The new target is just 1.3km south of previous drilling and lines up with old data, suggesting big potential said OZM.

Medallion Metals (ASX:MM8) has raised $6.5 million through a placement to back its push to acquire assets from the Forrestania Nickel Operation. The funds will help progress its Ravensthorpe Gold Project and support a targeted Final Investment Decision by late 2025. New and existing investors, including Alkane Resources, backed the placement, giving Medallion a strong cash position of $9.5 million post-settlement.

Logistics tech company, Yojee (ASX:YOJ), has secured a 51% joint venture (JV) with SmartClear to integrate its customs tech into Yojee’s MOSAIC platform. This partnership will speed up the development of MOSAIC and cut costs, initially targeting the freight and customs markets in the ANZ. On top of that, Yojee raised $3.5 million through an oversubscribed placement to fuel this growth.

ASX SMALL CAP LOSERS

Here are the worst performing ASX small cap stocks for February 3 [intraday]:

Code	Name	Price	% Change	Volume	Market Cap
AMS	Atomos	0.004	-43%	21,256,191	$8,505,129
AOK	Australian Oil.	0.002	-33%	2,000,000	$3,005,349
AYM	Australia United Min	0.002	-33%	256,614	$5,527,732
EEL	Enrg Elements Ltd	0.001	-33%	2,122,014	$4,880,668
H2G	Greenhy2 Limited	0.002	-33%	2,500,000	$1,794,553
LNU	Linius Tech Limited	0.001	-33%	5,742,767	$9,226,824
NRZ	Neurizer Ltd	0.002	-33%	53,168,157	$9,194,612
88E	88 Energy Ltd	0.002	-25%	3,775,098	$57,867,624
AVE	Avecho Biotech Ltd	0.003	-25%	2,714,004	$12,677,188
PKO	Peako Limited	0.003	-25%	266,666	$4,380,566
PRM	Prominence Energy	0.003	-25%	202,000	$1,556,706
XF1	Xref Limited	0.160	-22%	2,568,045	$39,358,000
BNL	Blue Star Helium Ltd	0.004	-20%	617,710	$13,474,426
MEL	Metgasco Ltd	0.004	-20%	1,230,225	$7,287,934
PIL	Peppermint Inv Ltd	0.004	-20%	709,507	$10,794,292
RAN	Range International	0.004	-20%	736	$4,696,452
TMK	TMK Energy Limited	0.002	-20%	215,832	$23,313,913
ODA	Orcoda Limited	0.093	-19%	140,000	$19,625,563
FUL	Fulcrum Lithium	0.130	-19%	33,125	$12,080,000
1TT	Thrive Tribe Tech	0.003	-17%	6,737,762	$6,095,169
ERA	Energy Resources	0.003	-17%	423,219	$1,216,188,722
MSI	Multistack Internat.	0.005	-17%	8,418	$817,824

Terry Holohan is stepping down as CEO of Resolute Mining (ASX:RSG), effective immediately. Holohan’s departure follows his highly publicised kidnapping by the Mali government last year. Chris Eger, who’s been acting as CEO, will take on the role full-time. Shares were down 7%.

IN CASE YOU MISSED IT

St George Mining (ASX:SGQ) has strengthened its in-country management team in Minas Gerais, Brazil, with the appointment of Ricardo Maximo Nardi, a world-leading expert in niobium ore processing. Formerly head of mineral processing at CBMM, Nardi’s 30+ years of experience is a major boost for SGQ as it looks to optimise processing options at its high-grade niobium-REE Araxá project and fast-track development plans.

Top End Energy (ASX:TEE) has finalised its acquisition of Serpentine Energy and its natural hydrogen project in Kansas, USA, following shareholder approval on January 28. TEE is now expanding its lease holdings and conducting geological evaluations ahead of exploration drilling planned for the second half of 2025.

Explorer Antares Metals (ASX:AM5) has its eye on several uranium targets at its Mt Isa North project in Queensland. The company shared with the market today that ten priority targets have been generated at the project, part of a total 49 targets now on the books.

Antares say the targets bare similarities to Paladin Energy’s (ASX:PDN) Odin-Valhalla-Skal cluster of uranium deposits in the vicinity. Antares will undertake ground truthing of its high-priority targets during the next field season at Mt Isa North.

At Stockhead, we tell it like it is. While St George Mining, Antares Metals and Top End Energy 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.