Metals Market Mixed as Trump Threatens Mexico, Canada Tariffs
Base metals exhibited a mixed performance in response to President Donald Trump's latest trade threats.
Following Trump's announcement that he would potentially impose tariffs on Mexico and Canada by February 1st, the dollar strengthened, making metals more expensive for buyers. This news overshadowed some relief felt after Trump postponed tariffs on China.
In recent months, concerns over renewed trade conflicts and China's economic challenges have weighed on metals. Copper experienced a 11% decline in the last quarter.
Trump's cautious approach towards China provides some respite, but uncertainty remains about his policies. He has ordered an investigation into Beijing's compliance with the previous trade agreement and has signaled plans for further discussions with Chinese President Xi Jinping.
On the London Metal Exchange, lead traded nearly 1% lower, while aluminum remained largely unchanged at $2,691.50 per ton. Zinc declined slightly by 0.2%.
In contrast, iron ore, which is heavily influenced by Chinese demand, rallied. Futures rose up to 1.3% to $105.15, reaching the highest level since December 17th.