Aluminium prices slipped on Friday as zinc, nickel, and lead also fell. Investors reacted to reports that US President Donald Trump may reduce tariffs on metal imports. Markets factored in the potential policy shift ahead of November’s midterm elections.
The three-month aluminium contract on the London Metal Exchange fell over 2.5% to $2,965.75 per tonne by midday. The most active contract on the Shanghai Futures Exchange declined 1.76% to 23,195 yuan per tonne.
Major Metals Follow Aluminium Lower
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel dropped $257 to $16,993.38 per tonne, a loss of 1.49%. Lead fell $10.30 to $1,972.38 per tonne, down 0.52%.
Traders expect Washington could loosen restrictions that have tightened global supply chains. These rules have pushed production costs higher and affected manufacturers worldwide.
White House Evaluates Tariff Adjustments
A Financial Times report said the White House is reviewing the list of goods subject to steel and aluminium tariffs. Officials may exempt some products, halt further tariff expansions, and focus on more targeted duties. Rising living costs put political pressure on the administration ahead of the midterm elections.
Trump previously imposed tariffs of up to 50% on imported metals and later extended them to many consumer products. The policy pushed US tariffs to the highest levels since before World War II. Economists say the levies increased consumer prices, rather than being absorbed by foreign producers.
Tariff Moves Shape Market Expectations
Trump later reduced tariffs on popular food products to curb grocery price inflation. He also called a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium plays a key role in packaging, transportation, and appliances. Even small daily price changes can affect production costs. Investors now watch for signs that US tariff policy may become less restrictive than previously feared.
