Aluminum in London declined for a second day as investors mulled the impact of U.S. President Donald Trump’s tariffs on imports.
The U.S. will start charging a 25% levy on all imports of aluminum and steel from March 12, threatening a reshuffle of global trade in the metals used in industries from packaging to cars and infrastructure.
Several analysts have said the price impact for aluminum would be reflected more through rising domestic premiums in the U.S. rather than global prices. There’s also speculation about how flows of aluminum might be diverted away from America, and whether some nations might escape the levies.
Japan has already asked for its aluminum and steel companies to be exempted. Hopes that Australia could win an exemption were dealt a blow by Trump’s senior trade adviser Peter Navarro, who said the country is “killing” the U.S. aluminum market. Canada is the biggest supplier of the lightweight metal to its southern neighbour.
“It is difficult to be certain on the duration of tariffs at this level given prior reversals and exceptions on aluminum tariffs, especially with regards to Canada,” Citigroup Inc. analysts wrote in an emailed note.
Aluminum fell 1% to $2,618 a ton by 1:06 p.m. in Singapore. Other base metals were mixed, with zinc up 1% and nickel down by 1.2%.
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