FX.co ★ Aluminum Futures Fall to 7-Month Low

Aluminum futures have fallen below $2,470 per tonne, reaching a seven-month low, primarily due to mounting trade tensions and the imposition of tariffs that have negatively impacted global demand. President Trump recently announced extensive "reciprocal tariffs," instituting a baseline duty of 10% on imports while levying significant duties on major economies such as China (54%), the European Union (20%), Japan (24%), and India (26%). Additionally, the United States has commenced enforcing a 25% tariff on imported vehicles, further exacerbating trade disruptions. Previously, on March 12, Trump's administration implemented 25% tariffs on steel and aluminum from Canada, Mexico, and the EU, along with a steep 200% tariff on Russian aluminum. Concurrently, Canada has prohibited the importation of Russian aluminum and steel. The uptick in protectionist policies has generated considerable uncertainty, leading to a decline in aluminum prices. Concurrently, production levels are on the rise, with alumina producers in regions like Guinea, Australia, and China increasing their capacity. Notably, China's aluminum production has soared to a record high of 44 million tons in 2024.