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Base metals traded on the Shanghai Futures Exchange were broadly weaker during Asian morning trading on Friday, with only aluminium and tin prices moving higher, after US President Donald Trump signed off on his much-anticipated tariffs on steel and aluminum imports into the United States.
The base metals have generally struggled this morning with the market mulling over the implications of Trump signing his proposed import tariffs into law and what sort of retaliatory actions may come as a result. A firmer dollar also added to the gloomy mood in the market.
Check Metal Bulletin’s live futures report here.
Trump has signed off on previously announced tariffs on steel and aluminium imports into the United States, officially implementing them as trade policy.
The US Midwest aluminium premium has seen a growth in volatility over the past couple of years, which only stands to increase in the coming months and years.
Kobe Steel and Kobe Aluminum, as well as metal buyer Toyota Motor Corp, are facing a class action lawsuit alleging that consumers had been defrauded into buying vehicles made of substandard metal.
Strong overseas demand is putting the heat on domestic copper and brass scrap markets in the US, with some consumers hiking up prices in an effort to keep metal inland.
The US will impose import tariffs on steel and aluminium, and with depressing inevitability other nations and trading blocs will cry “foul” and reach for the drawer marked “retaliation”, almost certainly leading to a wider and broader trade war.