Miners drag Australian shares lower as markets digest escalating US-China trade war tensions

April 9 (Reuters) - Australian shares fell at the open on Wednesday, hurt by a drag in mining stocks, tracking a fall in major stock indexes globally, with the United States' 104% tariffs on China expected to come into effect shortly.

The S&P/ASX 200 index .AXJO fell 1.6% to 7,392 points by 0033 GMT, almost wiping out gains from the previous session, when it finished 2.3% higher.

The United States said that 104% duties on imports from China will take effect shortly after midnight, with the news driving up concerns about slowing growth and higher inflation that have pummelled stocks since last week. MKTS/GLOB

Locally, markets remain vulnerable on worries that U.S. President Donald Trump's tariff policies may cause economic pain globally, and particularly in China — Australia's single biggest export market.

The mining sector .AXMM on the local bourse dragged the most, falling 3.5%, tracking weaker iron ore prices on escalating trade tensions between the U.S. and top consumer China. IRONORE/

Mining giants Rio Tinto RIO.AX, BHP Group BHP.AX and Fortescue FMG.AX fell between 3.9% and 4.9%.

Banks .AXFJ fell 0.4%, with the "Big Four" banks declining between 1% and 1.8%.

Energy stocks .AXEJ also fell 3.3%, tracking a slide in oil prices. O/R

Energy majors Woodside Energy WDS.AX and Santos STO.AX fell 3.7% and 3.5% respectively.

Investors are now wagering that the uncertainty will tip the Reserve Bank of Australia into cutting rates when it next meets in May.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.5% to 11,825.65 points.

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