Rio Tinto Ltd (ASX: RIO) shares plummeted 7.52% in Monday's trading session, reflecting growing investor concerns over global economic uncertainties and escalating trade tensions. The sharp decline comes as the mining giant grapples with the potential impact of recent US tariff announcements on its operations and future profitability.

The stock's significant drop can be largely attributed to the United States' recent decision to impose tariffs on nearly all products from virtually all countries. Of particular concern is the 34% tariff on Chinese goods, which prompted a retaliatory 34% tariff from China on US goods. This development has raised fears of a full-blown trade war, potentially dampening demand for commodities and adversely affecting mining companies like Rio Tinto.

Despite the gloomy outlook, there are some positive factors at play. Recent reports indicate that iron ore prices have remained robust, hovering above US$102 per tonne, thanks to increased demand from Chinese steelmakers. Additionally, China's factory activity has shown growth, with hot metal production - a key indicator of iron ore consumption - continuing to rise. However, these positive indicators have been overshadowed by the broader economic concerns, leading to the sharp sell-off in Rio Tinto shares.