Aluminium prices slipped on Friday, while zinc, nickel, and lead also fell. Investors reacted to reports that US President Donald Trump may reduce tariffs on imported metals. Markets factored in the 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. On the Shanghai Futures Exchange, the most active aluminium contract fell 1.76% to 23,195 yuan per tonne.
Broad Decline 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 drop 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. Higher production costs have pressured manufacturers and affected industrial output worldwide.
White House Reviews Tariff Plans
A Financial Times report said the White House is reviewing the list of goods covered by steel and aluminium tariffs. Officials may exempt some products, halt further tariff expansions, and rely 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 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.
Market Eyes Potential Policy Shift
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 is central to 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.
