Aluminium prices slipped on Friday as zinc, nickel, and lead also moved lower. Investors reacted to reports that US President Donald Trump might soften 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.
Industrial Metals Follow Aluminium Down
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel declined $257 to $16,993.38 per tonne, a drop of 1.49%. Lead fell $10.30 to $1,972.38 per tonne, down 0.52%.
The losses reflected growing expectations that Washington may loosen restrictions that have tightened global supply chains. Higher costs have affected manufacturers and increased production expenses worldwide.
White House Reviews 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 are adding 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 instead of being absorbed by foreign producers.
Markets Monitor Potential Policy Shift
Trump later scaled back 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 essential to packaging, transport, and appliances. Even modest daily price movements can affect production costs. Investors now watch closely for signs that US tariff policy may become less restrictive than previously expected.
