Aluminium prices fell on Friday as zinc, nickel, and lead also lost ground. Investors reacted to reports that US President Donald Trump may reduce tariffs on metal goods. Markets factored in the possible shift ahead of November’s midterm elections.
The three-month aluminium contract on the London Metal Exchange dropped more than 2.5% to $2,965.75 per tonne by midday. The most active contract on the Shanghai Futures Exchange fell 1.76% to 23,195 yuan per tonne.
Industrial Metals Follow a Broad Pullback
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 declined $10.30 to $1,972.38 per tonne, down 0.52%.
Traders expect Washington could ease rules that have strained global supply chains. The restrictions have pushed production costs higher and affected manufacturers worldwide.
White House Weighs Tariff Adjustments
A Financial Times report said the White House is reviewing the list of goods affected by steel and aluminium tariffs. Officials may exempt certain products, halt further tariff expansions, and rely on targeted duties. Rising living costs put political pressure on the administration ahead of midterms.
Trump previously imposed tariffs of up to 50% on imported metals and extended them to many consumer goods. 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.
Tariffs and Market Expectations
Trump later reduced tariffs on popular food products to limit grocery price inflation. He also called a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium plays a central role in packaging, transportation, and appliances. Even small price movements can affect production costs. Investors now watch for signs that US tariff policy may become less restrictive than previously feared.
