Aluminium prices fell on Friday, with zinc, nickel, and lead also declining. Investors reacted to reports that US President Donald Trump may reduce tariffs on imported metals. Markets priced in the 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.
Broader Drop 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 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 worldwide and pressured industrial output.
White House Evaluates Tariff Adjustments
A Financial Times report said the White House is reviewing 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 have raised consumer prices rather than being absorbed by foreign producers.
Markets Watch for Changes in Tariff Policy
Trump later scaled back 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, transport, and appliances. Even modest daily price changes can affect production costs. Investors now monitor whether US tariff policy may become less restrictive than previously expected.
