Aluminium prices fell on Friday while zinc, nickel, and lead also dropped. Investors reacted to reports that US President Donald Trump may reduce tariffs on imported metals. Markets priced in a potential shift ahead of November’s midterm elections.
The three-month aluminium contract on the London Metal Exchange lost more than 2.5% to $2,965.75 per tonne by midday. On the Shanghai Futures Exchange, the most active aluminium contract fell 1.76% to 23,195 yuan per tonne.
Industrial Metals Follow Aluminium Lower
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel fell $257 to $16,993.38 per tonne, a drop of 1.49%. Lead lost $10.30 to $1,972.38 per tonne, down 0.52%.
The declines reflected growing expectations that Washington may loosen restrictions tightening global supply chains. Higher production costs have pressured manufacturers worldwide and affected industrial output.
White House Reviews Tariff Options
A Financial Times report said the White House is reviewing goods covered by steel and aluminium tariffs. Officials may exempt certain products, halt further tariff expansions, and rely on targeted duties. Rising living costs are adding political pressure ahead of the midterm elections.
Trump previously imposed tariffs of up to 50% on imported metals and later extended them to many consumer goods. The policy pushed US tariffs to the highest levels since before World War II. Economists say the levies have raised consumer prices rather than being absorbed by foreign producers.
Markets Monitor Potential Policy Shift
Trump later reduced tariffs on popular food products to curb grocery price inflation. He also agreed to a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium remains essential for packaging, transport, and appliances. Even small daily price movements can influence production costs. Investors now watch for signs that US tariff policy may become less restrictive than previously expected.
