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Aluminium falls as Trump considers 10% tariff on China from February

Aluminium rates fell on Wednesday as U.S. President Donald Trump stated his administration was thinking about enforcing a 10% tariff on Chinese imports from Feb. 1, pumping up fears of trade stress.

Three-month aluminium on the London Metal Exchange ( LME) was down 0.7% at $2,626.5 a metric load in authorities open-outcry trading.

Trump stated late on Tuesday that his administration was talking about enforcing a 10% tariff on items imported from China on Feb. 1, the same day that he previously stated Mexico and Canada could deal with levies of around 25%. He likewise promised duties on European imports, without supplying additional details.

A global trade war, if it unfolds, may ultimately result in lower economic growth and lower need for industrial metals, said Ole Hansen, head of commodity strategy at Saxo Bank.

In the short term, the market will want to know more about the tariffs and China's response, and just then will we know more about the brief- to medium-term impact on need, Hansen added.

China's foreign ministry stated on Wednesday Beijing was ready to preserve communication with the U.S. to properly. manage differences and broaden mutually useful cooperation.

While traders wait to see what portion of the U.S. trade. rhetoric becomes genuine action and what stays negotiating. leverage, a broad trade memorandum, which Trump signed on. Monday, keeps some space for a determined method.

With this memorandum, Trump bought federal companies to. total thorough reviews of a range of trade concerns by. April 1.

LME copper fell 0.5% to $9,242 in official activity. after closing at the greatest level given that Nov. 11 on Tuesday.

Trump reversed some U.S. green energy policies but then. unveiled a new expert system (AI) investment push,. leaving longer-term need potential customers for copper, important for the. energy shift, in the U.S. largely unmoved so far.

LME tin was steady at $30,225, nickel fell. 1.9% to $15,775, lead acquired 0.4% to $1,979 and zinc. was down 0.6% at $2,897.

(source: Reuters)