Aluminium prices dropped on Friday as zinc, nickel, and lead also declined. Investors responded to reports that US President Donald Trump may ease tariffs on imported metals. Markets priced in the possible policy shift ahead of November’s midterm elections.
The three-month aluminium contract on the London Metal Exchange fell more than 2.5% to $2,965.75 per tonne by midday. On the Shanghai Futures Exchange, the most active aluminium contract declined 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%.
Traders expect Washington may loosen rules that have tightened global supply chains. These 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 covered by steel and aluminium tariffs. Officials may exempt certain products, halt further tariff expansions, and focus on targeted duties. Rising living costs have increased 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 products. The policy pushed US tariffs to the highest levels since before World War II. Economists say the levies increased consumer prices instead of being absorbed by foreign producers.
Tariffs and Market Expectations
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 central to 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 feared.
