As markets begin to tumble and nations distance themselves from the United States, Aussie pollies ask, what now?

With global markets in free fall, can we isolate ourselves from America?

Prime Minister Anthony Albanese and Opposition Leader Peter Dutton have taken a bipartisan position on the issue, promising not to undermine Australia's biosecurity in US tariff negotiations, all as global share prices tumble.

Tariffs are expected to directly reduce Australia's GDP by about 0.2 per cent. Still, the indirect impact of the measures on global trade could lead to a bigger hit to the domestic economy.

"What we have seen overnight is a fall in the stock market globally," Mr Albanese told ABC Radio on Friday.

"There is concern that this will lead to lower economic growth right around the world, and of course, as a trading nation, that will have an impact on us."

Australia's ASX closed down just over 2 per cent.

America's S&P 500 is down almost 5 per cent.

The Nasdaq is down a full 6 per cent.

The stock market slump slashed the wealth of the 500 richest people on the planet by more than 330 billion Australian dollars - including Elon Musk, who lost more than 17 billion in 24 hours.

The only one not worried? The President himself.

Today, Trump's Commerce Secretary Howard Lutnick launched a fresh attack on our beef farmers. However, while the Trump administration is defiant, the rest of the world stands united.