Trump's imposition of additional tariffs on steel has triggered a chain reaction, causing iron ore prices to fall to a new low since May 2nd.

American President Trump's announcement of doubling import tariffs on steel and aluminum is sparking intense volatility in the global commodities market. During the Asian trading session on June 2nd, the price of Singapore iron ore futures briefly fell by 0.8% to $94.85 per ton, hitting a new low since May 2nd. As of the time of writing, the main contract is at $95.15 per ton, showing continued concerns in the market over escalating trade tensions. Trump officially signed the tariff increase order on May 31st (last Friday) during his visit to a steel company in Pennsylvania, stating that the new tariffs will take effect on June 4th. This timeline, which is two weeks earlier than expected by the market, directly led to a reconstruction of the price system along the steel industry chain. Vivek Dhar, a commodity analyst at the Commonwealth Bank of Australia, pointed out: "U.S. steel prices may see short-term policy benefits, but steel prices in other regions globally may come under pressure, particularly in China where price fluctuations may dampen iron ore demand through profit transmission mechanisms." As the world's largest consumer of iron ore, any changes in the Chinese market immediately impact global miners. The ANZ Banking Group warned in a recent research report: "Escalating trade tensions pose systematic risks to the commodity market, and any reduction in demand for Chinese steel products could damage iron ore demand." It is worth noting that both the Dalian Commodity Exchange and the Shanghai Futures Exchange for iron ore futures and rebar futures are closed for the Dragon Boat Festival holiday, and the market will need to wait for their opening to observe domestic fund reactions. In contrast to iron ore, the price of aluminum on the London Metal Exchange (LME) only slightly decreased by 0.1% to $2441 per ton, indicating that the tariff impact has not resonated in the non-ferrous metal sector. Other LME base metals are generally rising, reflecting resilience in industrial metal demand. As the countdown to the tariffs takes effect, traders are closely monitoring two variables: whether China's Ministry of Commerce will implement countermeasures and changes in capacity utilization rates of U.S. steel companies.