SINGAPORE- Iron ore futures inched lower on Thursday after US President Donald Trump unveiled a broad set of reciprocal tariffs, although seasonal demand for the steelmaking ingredient helped cushion the fall.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was down 0.2 percent at 789.5 yuan ($108.12) a metric ton.
The benchmark May iron ore on the Singapore Exchange was 0.79 percent lower at $102 a ton.
US tariffs were more aggressive than expected and that will weigh on ferrous markets, broker Galaxy Futures said in a note.
Trump on Wednesday revealed a 10 percent minimum tariff on most goods imported to the United States, with much higher duties on products from dozens of countries, worsening a trade war that threatens to drive up inflation and stall US and worldwide economic growth.
Chinese imports will be hit with a 34 percent tariff, bringing the total new levy to 54 percent.
Beijing on Thursday urged the United States to immediately cancel its latest tariffs and vowed countermeasures to safeguard its own interests.
Still, steelmakers have ramped up production during the peak construction season in March and April, cushioning the fall in prices.
