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Aluminium prices edged lower on Friday as a broader pullback in metals gathered pace after reports that US president Donald Trump may roll back some tariffs on metal goods.
On the London Metal Exchange, the benchmark three-month aluminium contract slipped more than 2.5% to $2,965.75 a tonne by around midday, while the most-active contract on the Shanghai Futures Exchange fell 1.76% to 23,195 yuan (€2,832) a tonne.
Several core industrial metals have also moved lower on the day. Zinc was quoted at $3,316.50 a tonne, down $51.95 (-1.54%), nickel at $16,993.38, down $257 (-1.49%) and lead at $1,972.38 or down $10.30 (-0.52%).
The decline reflects growing expectations that Washington could loosen some of the restrictions that have tightened global supply chains and driven up costs for manufacturers.
According to a report from the FT, the White House is reviewing the extensive list of goods caught by tariffs on steel and aluminium and may exempt certain products, stop further tariff expansions, and rely instead on more targeted duties.
The shift comes as the administration grapples with voter dissatisfaction over the cost of living ahead of November’s midterm elections.
Trump imposed duties of up to 50% on imported metals last summer, later extending them to a wide range of everyday items.
The policy pushed US tariffs to their highest levels since before the Second World War, but economists say the levies have fed through to consumer prices, undermining claims that foreign producers would bear the burden.
Trump has since scaled back tariffs on popular food products in a bid to tame grocery price inflation for ordinary Americans and called a truce in its trade war with China after Beijing retaliated with its own tariffs.
Aluminium, in particular, sits at the heart of packaging, transport, and appliances, so even modest daily moves can quickly feed into expectations for input costs, especially if investors start to believe US tariff settings are becoming less restrictive than feared.
