Rio Tinto Ltd (ASX: RIO) saw its shares plunge 7.52% in Monday's pre-market trading, reaching a six-month low amid growing concerns over global trade tensions and economic uncertainties. The significant drop comes as investors reassess the mining giant's profit potential in light of recent geopolitical developments.

The sharp decline can be attributed to several factors, including the United States' announcement of widespread tariffs on products from nearly all countries. Of particular concern is the 34% tariff imposed on Chinese goods, which prompted retaliatory measures from China. This escalating trade war has sparked fears about potential impacts on commodity demand, a crucial factor for Rio Tinto's business model.

Despite these concerns, there are some positive indicators for the mining sector. Recent reports suggest that iron ore prices have remained resilient, hovering above US$102 per tonne, thanks to increased demand from Chinese steelmakers. Additionally, China's factory activity has shown growth, reaching its fastest pace in four months, potentially offsetting some of the negative sentiment surrounding the stock.

As investors continue to navigate the volatile market conditions, Rio Tinto's diversified portfolio across multiple commodities, including iron ore, aluminium, copper, and lithium, may provide some buffer against sector-specific risks. However, the company's exposure to cyclical forces and global economic trends continues to make it susceptible to market fluctuations, as evidenced by today's significant share price movement.