Aluminium prices fell on Friday, while zinc, nickel, and lead also declined. Investors responded 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 dropped 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 decline 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 that have tightened global supply chains. Rising production costs have affected manufacturers and pressured industrial sectors worldwide.
White House Considers Targeted Tariff Changes
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 focus on targeted duties. Political pressure is rising ahead of the midterm elections due to increasing living costs.
Trump previously imposed tariffs of up to 50% on imported metals and later extended them to everyday products. 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.
Market Expectations Shift on Tariffs
Trump later reduced tariffs on popular food products to curb grocery price inflation. He also declared a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium plays a key role in packaging, transport, and appliances. Even small daily price movements can influence production costs. Investors now monitor whether US tariff policy may become less restrictive than previously expected.
