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Daily Base Metals Report

Metals Show Muted Reaction to New Tariff Threats

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

  • Trade tensions escalated as new US tariffs triggered retaliatory measures from key trading partners.
  • Further tariff increases on China had minimal impact on the base metals market.
  • A weaker dollar and geopolitical uncertainty supported gold.

US stocks opened lower, mirroring losses in European markets, as investors reacted to Trump’s latest round of tariff hikes. Duties on Canadian and Mexican imports have been raised to 25%, while tariffs on Chinese goods doubled to 20%, escalating trade tensions further. In response, Beijing imposed 10% to 15% tariffs on US agricultural exports, while Canada introduced duties on $107 billion worth of American goods. Mexico has signalled it will reveal its own countermeasures on Sunday. In Europe, the latest data showed Eurozone unemployment holding steady at a historic low of 6.2% for the fourth consecutive month, despite ongoing economic sluggishness. Investors are now turning their attention to the European Central Bank’s policy decision on Thursday, with markets pricing in a 99% probability of a 25bps rate cut. The dollar weakened against major currencies, with the USDEUR pair dropping below 0.948 and the dollar index slipping below 106.0 for the first time since December. Meanwhile, the 10-year US Treasury yield continued its downward trajectory, testing the 4.1% level as markets assessed the potential economic fallout from rising trade barriers.

Despite President Trump's reaffirmation of his intent to raise tariffs on Canada, Mexico, and China—targeting aluminium and steel—the base metals markets remained relatively stable. In particular, aluminium, which stands to be most affected by these tariffs, experienced only marginal gains, maintaining a price above the $2,600/t mark at $2,616.50/t. This suggests that the market is uncertain about tariff implementation and its direct impact on supply chains. Furthermore, given the US dependence on copper and aluminium imports from Canada and Mexico, there remains a possibility for exemptions. Other metals showed little movement, with copper trading slightly below $9,400/t. Nickel, on the other hand, maintained its elevated position following previous gains, staying above the $15,800/t level.

A softer dollar and geopolitical concerns helped gold rebound above $2,900/oz, with the metal trading at $2,909/oz at the time of writing. Silver, however, edged lower, slipping to $31.6/oz. Oil prices fell, with WTI at $67.5/bbl and Brent at $70.5/bbl, as broader market uncertainty dampened demand expectations.

Lme Metals Price And Volume 04032025

All price data is from 04.03.2025 as of 17:30

Disclaimer

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