FX.co ★ Iron Ore Rises as Trump Unveils New Tariff Rates

Iron ore futures increased to approximately CNY 736 per tonne on Tuesday, breaking a two-day decline as U.S. President Donald Trump introduced new tariff rates on 14 countries, which alleviated some uncertainty in global markets. Additionally, he signed an executive order extending the reciprocal tariff deadline from July 9 to August 1, allowing more time for negotiations. Despite this, trade tensions remained as Beijing cautioned Washington against reigniting disputes by potentially reimposing tariffs on Chinese goods next month, threatening countermeasures if China is excluded from crucial supply chains. Nonetheless, iron ore prices remained near three-month highs, buoyed by China's persistent efforts to tackle deflationary pressures and stabilize its steel industry. The Central Financial and Economic Affairs Commission recently advocated for stricter regulation against firms excessively cutting prices, targeting ongoing challenges such as low profit margins and chronic overcapacity in the steel sector.