In early trading the S&P/ASX200 was down 172.2 points, or 2.26 per cent, to 7,537.4, as the broader All Ordinaries fell 171.5 points, or 2.17 per cent, to 7,742.4.
The slip on Friday comes after a broad-based sell-off on Wall Street overnight, after the S&P500 fell 3.46 per cent, the tech-led Nasdaq lost 4.31 per cent and the Dow Jones Industrial index lost 2.50 per cent.
"US share markets sold off overnight in a disappointing sequel to the previous session's surge higher," Moomoo market analyst Michael McCarthy said.
"While many of the US administration's newly imposed tariffs were "paused", the clarification that its trade barrier against China now sits at 145 per cent was the catalyst for the latest rout."
Markets had rallied the day before after US President Donald Trump announced a 90-day delay for the bulk of his "Liberation Day" tariffs, while escalating tariffs on China to 125 per cent.
The White House later clarified the effective tariff on Chinese good was 145 per cent, when including an earlier 20 per cent impost related to the fentanyl trade.
Ten of 11 local sectors were trading lower by 10.40am, with only the defensive consumer staples eking a 0.2 per cent gain.
Energy stocks were again in trouble, down four per cent as trade war worries weighed on oil prices, with Brent crude futures falling three per cent since yesterday's ASX close to below $US63 per barrel.
Financial stocks were bleeding 2.9 per cent lower with all big four banks in the red, and materials stocks lost 1.3 per cent as global growth concerns again dragged on miners.
Gold miners were an exception with Newmont Corporation, Regis Resources and West African Resources leading the bourse with more than three per cent gains as investors ducked for cover and gold futures broke convincingly above $US3200 per ounce for the first time.
The Australian dollar is buying 62.18 US cents, up slightly from 61.94 at 5pm on Thursday.
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