Issue #6 | Aussie Markets Up, Tariffs Return

ASX - ASX this week, Top 3 Winners & Losers
Deals Down Under - Eucalyptus $1.6bn sale
Global Markets - Trump lifts Tariffs to 15%
Other News - Aussie Politics, Sport, Culture and more

Despite a late sell-off on Friday, the ASX 200 ended the week up 1.8%, with reporting season continuing to contribute to the market’s strong start to the year. Investors shifted at the end of the week as they reacted to renewed tensions between Iran and the US over a nuclear deal negotiation. However, the impact was limited with the index only dropping 0.05% drop for the day.

The share market is expected to drop after Trump imposed 15% tariffs late in the week. While the announcement weighed on sentiment, it’s not unfamiliar territory. Similar policy shocks over the past year such as ‘liberation day’ have produced short-term dives before being absorbed by the market.

ASX Movers by the Numbers:

The week’s best performers on the ASX 200 include:

In contrast, the worst performers on the ASX 200:

Austal, an Australian shipbuilder and defence contractor lead the ASX 200 after securing a $4bn contract from the Commonwealth Department of Defence to build 8 Landing Craft Heavy vessels through to 2038. For the market, they are drawn to the stable, steady cashflows backed by the government which lowers risk.

Zip leads the losers this week on the ASX 200 marking a week to forget for Zip investors. Its fall surprisingly comes after Zip reported a record cash EBITDA and $124m, up around 85% year on year. However, an increase in earnings was dimmed by the increase in ‘net bad debts’, a key risk metric which climbed 11% signalling to worried investors to sell.

Australian telehealth startup, Eucalyptus agreed to a $1.6bn all-cash sale to New-York-listed digital health platform Hims & Hers, marking one of the largest startups exits in Australia.

Founded in 2019, Eucalyptus is commercially known through its portfolio of healthcare brands: Pilot (men’s health), Juniper (women’s health) and Kin (fertility). The group operates over Australia, the UK, Germany and Japan. With rapid demand of GLP-1 drugs and a demand for healthier living - Eucalyptus has scaled rapidly over the past 7 years.

With global expansion already underway, the transaction gives Eucalyptus immediate access to Hims & Hers’ distribution, supply chain and customer base which will accelerate Eucalyptus’ international rollout and global mission.

Co-founder and Eucalyptus’ Chief Executive Tim Doyle’s 10% stake has been valued at an impressive $163 million. Doyle is set to stay onboard post-acquisition becoming the Senior Vice President of international operations at Hims & Hers.  

For Hims & Hers, the acquisition will fast-track its reach into new markets and expand their global reach.

CEO Andrew Dudum explained the deal will create a diversified international platform for the business and step towards being “the leading global consumer health platform”. For Hims & Hers it’s simple: buying global reach is easier than building it.

As expected, Hims & Hers’ share price fell around 2.5% on announcement on Thursday. However, with Eucalyptus’ strong success over the past seven years, Hims & Hers’ new acquisition will be an interesting watch over the next few months and years.

Just one day after the US Supreme Court struck down Donald Trump’s sweeping “reciprocal tariffs”, the President escalated.

In a 6–3 ruling, the Court found that the 1977 International Emergency Economic Powers Act (IEEPA) did not authorise tariffs. The law does not mention duties or taxes. It was a rare judicial pushback on Trump’s trade strategy. Within 24 hours, Trump pivoted. He lifted the universal tariff from 10% to 15%, invoking Section 122 of the Trade Act, which allows temporary tariffs for up to 150 days without Congressional approval. The legal mechanism changed, while the policy direction did not.

Australia exports around $24 billion in goods to the US annually. Exporters now face a 15% levy instead of 10%. Since April 2025, Australian firms have paid an estimated $1.4 billion under the now-invalid IEEPA framework, funds that may be eligible for refunds through US courts.

Meat, gold and medicinal goods account for nearly 46% of Australian exports to the US since 2020. Large multinationals may be able to absorb or restructure around higher tariffs. Small and mid-sized exporters cannot. For many regional producers, particularly in agriculture and manufacturing, a 5% increase in border costs can materially compress margins, weaken US competitiveness, and delay hiring or expansion decisions. And for US-based small importers, higher tariffs mean either passing costs onto consumers or absorbing them, both of which squeeze already thin margins.

Roughly US$175 billion has been collected under the reciprocal tariffs. More than 1,000 refund cases are already before lower courts. Even if repayments occur, economists expect a slow, legally complex process with limited short-term economic stimulus.

The 15% tariff can only last 150 days without Congressional approval. From here:

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