ASX mining stocks fall as investors await fresh US tariffs
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More news: Miners were some of the worst-hit stocks on the ASX as investors braced for new US tariffs on China, which have pulled down iron ore prices.
Fortescue was down 3.7% at 2:50pm AEDT, with rivals BHP (-0.4%) and Rio Tinto (-0.1%) seeing more modest declines. Iron ore futures eased down 0.1% to just under US$100 ($161.30) a tonne on the Singapore Exchange.
Lithium and iron ore miner Mineral Resources (-8.4%) was the worst-performing stock across the ASX 200 index. Lithium play Pilbara Minerals (-2.7%) and diversified miner South32 (-2.5%) also fell.
Materials lowered 0.6% as the ASX 200 index dropped 0.7%.
US President Donald Trump said that an extra 10% tariff on China will start on Tuesday, in addition to 25% tariffs on imports from Canada and Mexico.
Trump dashes hopes of Canada-Mexico tariff reprieve, markets react
The news: US President Donald Trump said the 25% tariffs on imports from Canada and Mexico, will start Tuesday, scrapping hopes of a last-minute deal to avoid the trade action.
Speaking at the White House, Trump told media there was “no room left for Mexico or for Canada” to negotiate.
The context: The tariffs were first announced on 1 February but postponed after Canada and Mexico pledged to strengthen border enforcement.
Commerce Secretary Howard Lutnick had suggested Trump might soften the tariffs, but Trump confirmed they will proceed as scheduled.
Trump has said the tariffs are meant to pressure the two countries to step up their fight against fentanyl trafficking and illegal immigration. Mexico sent 10,000 troops and extradited cartel members, while Canada named a fentanyl czar, but the efforts have been insufficient.
The numbers: The announcement rattled markets, with the S&P 500 falling 1.76% and the Dow Jones dropping more than 1.48%.
Trump had also threatened an extra 10% tariff on Chinese imports would also take effect Tuesday.
Canadian Foreign Minister Mélanie Joly said Canada is ready with USD155 billion in retaliatory tariffs. Mexican President Claudia Sheinbaum said her government has a plan and will respond accordingly.
The sources: The Washington Post, Axios, Reuters
