Aluminium prices fell on Friday, while zinc, nickel, and lead also declined. Investors reacted to reports that US President Donald Trump may ease tariffs on imported metals. Markets factored in a potential policy 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.
Broad Pullback Hits Industrial Metals
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel fell $257 to $16,993.38 per tonne, a decline of 1.49%. Lead dropped $10.30 to $1,972.38 per tonne, down 0.52%.
The declines reflected expectations that Washington could relax restrictions that have tightened global supply chains. Higher costs have affected manufacturers worldwide and pushed production expenses up.
White House Reviews Tariff Policy
A Financial Times report said the White House is reviewing goods covered by steel and aluminium tariffs. Officials may exempt some products, halt further tariff expansions, and rely on targeted duties. Rising living costs are increasing political pressure ahead of the midterm elections.
Trump previously imposed tariffs of up to 50% on imported metals and later extended them to many everyday items. The policy pushed US tariffs to the highest levels since before World War II. Economists say the levies have increased consumer prices rather than being absorbed by foreign producers.
Market Eyes Tariff Changes
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 vital role in packaging, transportation, and appliances. Even small daily price changes can influence production costs. Investors now watch whether US tariff policy may become less restrictive than previously feared.
