LONDON: Aluminium and copper prices fell in London on Friday as global markets braced for the threat of US tariffs on Canada and Mexico as early as Saturday, moves that could disrupt nearly $1.6 trillion in annual trade.
Three-month copper on the London Metal Exchange (LME) was down 0.8% at $9,056.50 a metric ton by 1729 GMT while aluminium lost 1.0% to $2,599.50. US President Donald Trump on Thursday reiterated his threat of 25% duties on imports from Canada and Mexico. That inflated overall uncertainty, driving more investors towards safe-haven assets.
Reuters reported on Friday, citing three people familiar with the planning, that Trump was expected to announce new tariffs against Canada and Mexico that will begin on March 1, but will include a process for the countries to seek specific exemptions for certain imports.
LME copper was on track for a 2.5% fall this week, its worst in two-and-a-half months, but remained set to register its first monthly growth since September with a 3.3% gain in January.
“The reality is that most fund interest lies in other commodity spaces, such as energy, precious (metals) and agriculture where they see a clearer picture. Our space is therefore more dominated by higher-frequency types,” said Alastair Munro at broker Marex.
Whatever the weekend brings for the US imports from Canada and Mexico, worries for the metals markets are likely to continue because Trump said on Monday he would impose tariffs on aluminium, copper and steel. He did not give any specific date for the potential move.
Comments