The Australian share market has bounced back from sharp losses prompted by fears of a trade war. -AAP Image
A relief rally for the local sharemarket fizzled out after US tariffs took effect on China, in what Donald Trump described as an "opening salvo" against Australia's biggest trading partner.
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The benchmark S&P/ASX200 index swung slightly into the red in the final minutes of trade on Tuesday, finishing down 5.4 points, or 0.06 per cent, to 8,374.
The broader All Ordinaries gained 5.0 points, or 0.06 per cent, to 8,633.4.
The ASX200 index had been up as much as 0.8 per cent in early trading, bouncing back from Monday's 1.8 per cent plunge, after Mexico and Canada won a 30-day reprieve from the US president's tariffs.
But the gains evaporated after Trump's levies went into effect with China at a minute past midnight Washington time, or 4.01 pm AEDT.
The Australian dollar, which on Monday hit an almost five-year low of 60.88 US cents, had rebounded against its US counterpart, buying 61.81 US cents, from 61.27 US cents about 5pm on Monday.
