Iron ore rises as Trump unveils new tariff rates

Iron ore futures rose to around CNY 736 per tonne on Tuesday, snapping a two-day losing streak as US President Donald Trump announced new tariff rates on 14 countries, easing some uncertainty in global markets.

The move was seen as a partial de-escalation in recent trade tensions, particularly as Trump also signed an executive order extending the reciprocal tariff deadline to August 1 from July 9, allowing additional time for negotiations and reducing near-term risk sentiment.

However, geopolitical strains persisted. Beijing issued a strong warning to Washington, urging the US not to reignite trade frictions by reimposing tariffs on Chinese goods next month. China also threatened countermeasures and raised concerns over potential exclusion from key global supply chains, heightening the risk of renewed economic fragmentation.

Despite the uncertain backdrop, iron ore prices remained near three-month highs, underpinned by optimism over China’s policy support. The country continues to implement targeted measures aimed at combating deflationary pressures and revitalizing its beleaguered steel sector. In its latest move, the Central Financial and Economic Affairs Commission called for stricter oversight of excessive price-cutting by steel producers—a strategy intended to tackle structural issues such as low profit margins, weak demand, and chronic overcapacity.

Market participants interpreted this as a sign that Beijing remains committed to stabilizing the steel industry and broader commodity demand, helping to underpin iron ore prices in the near term. Further clarity on trade policies and stimulus measures from both the US and China will likely shape the trajectory of iron ore markets in the coming weeks.