Metal prices surge ahead of Trump’s new import tariffs

London — Aluminium prices touched their highest in almost three weeks and copper traded on the US Comex exchange widened its premium against the London benchmark after US President Donald Trump said he planned to impose new 25% tariffs on steel and aluminium imports.

Gold prices, meanwhile, continued their record rally and broke through the key $2,900 level for the first time, driven by safe-haven demand. Spot gold surged 1.6% to $2,905.24 per ounce, at 6.45pm GMT, after hitting a record high of $2,911.30 earlier in the session.

Speaking to reporters on Air Force One on Sunday, on his way to the NFL Super Bowl in New Orleans, Trump said he would announce the new metals tariffs later on Monday. 

Three-month aluminium on the London Metal Exchange was up 1.2% at $2,659 a tonne by 5.08pm GMT after hitting $2,661, its highest since January 21.

The US is highly dependent on imported aluminium, mostly from Canada. Prices of primary aluminium in the US are based on the LME benchmark plus the Midwest premium, which has been elevated in recent months and was last up 10% to $0.305 a lb (0.138kg), its highest since July 2022.

“Tariffs would result in higher aluminium prices in the US, representing a significant upside risk to the US Midwest premium this year, which would result in higher costs for consumers in the US,” said Ewa Manthey, a commodities analyst at ING.

Trump said that in addition to Monday’s statement he would announce reciprocal tariffs on Tuesday or Wednesday to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.

LME benchmark copper added 0.4% to $9,445.50 a tonne, having hit its highest since November 8 at $9,530.

Most active US Comex copper futures touched their highest since September 30 and were last up 2.2% at $4.691 a lb, representing a premium over the LME price of $896 per tonne.

This premium was lower in late May 2024, when Comex copper prices hit an all-time high of $5.1985 a lb due to a short squeeze, where parties were forced to buy back their short positions at a loss or deliver physical copper to close them out.

CME copper stocks have been rising since the incident and are now at a six-year high.

LME zinc rose 0.2% to $2,843 per tonne, lead added 0.2% to $1,996, tin gained 0.5% to $31,160 and nickel lost 1.5% to $15,515.

Reuters