Global Trade Turmoil Set To Worsen As Trump Tariffs, China Slowdown Combine To Crush Commodities

Iron Ore Set to Slide Further as Trump Tariffs, China Slowdown Collide: Goldman Says

Iron ore prices are set to decline further as the impact of President Trump's tariffs and a slowdown in China's economy collide, according to Goldman Sachs.

The bank's commodity research team said in a note that iron ore prices, which have already fallen by around 30% since the start of the year, will likely continue to slide due to a combination of factors.

"Tariffs and the resulting trade tensions are likely to weigh on global steel demand, which in turn will put downward pressure on iron ore prices," the team said. "At the same time, China's economic slowdown is also likely to impact steel demand and prices."

Goldman Sachs noted that the Chinese government has been trying to stimulate its economy through a combination of monetary and fiscal policy, but so far the efforts have been slow to take hold.

The bank's analysts also pointed out that the impact of the tariffs on iron ore prices is likely to be exacerbated by the fact that the U.S. and China have not yet reached a trade agreement.

"Until the tariffs are lifted, we expect iron ore prices to remain under pressure," the team said.

The price of iron ore, which is used to make steel, has been falling steadily since the start of the year due to a combination of factors, including a slowdown in global economic growth and increased supply.

The decline in iron ore prices has had a significant impact on the mining industry, with many companies having to cut production and reduce costs in order to stay profitable.

The situation is likely to continue to be a major concern for the industry in the coming months, with many analysts predicting that iron ore prices will continue to fall unless there is a significant improvement in global economic conditions or a resolution to the trade tensions between the U.S. and China.