Iron ore prices set to fall as trade tensions escalate

Iron ore futures fell, heading for a monthly loss, pressured by concerns over U.S. tariffs that are fueling trade tensions against Chinese steel exports. Iron ore futures for April delivery on the Singapore Exchange fell 1.45% to $102.85 a tonne, extending their monthly losses to more than 0.6% so far. The U.S. president confirmed in a post on Truth Social that proposed tariffs on Canada and Mexico will go into effect on March 4 without delay, along with an additional 10% tariff on imports from China on the same date. This is in addition to Trump’s earlier announcement of a 25% tariff on all steel and aluminum imports, which sparked a new wave of trade frictions against Chinese steel. Such higher tariffs are set to cut into an estimated $7 billion in Chinese steel shipments, a key source of income for Chinese smelters as the domestic property sector struggles.