Aluminium prices slipped on Friday, while zinc, nickel, and lead also declined. Investors reacted to reports that US President Donald Trump may ease tariffs on imported metals. Markets priced 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. The most active aluminium contract on the Shanghai Futures Exchange 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 relax restrictions that have tightened global supply chains. Rising production costs have affected manufacturers and increased pressure across industrial sectors.
White House Reviews Tariff Policy
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 focus on targeted duties. Rising living costs have added 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 raised consumer prices rather than being absorbed by foreign producers.
Markets Monitor Possible Tariff Shift
Trump later reduced 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 small daily price changes can affect production costs. Investors now watch for signs that US tariff policy may become less restrictive than previously expected.
