BENGALURU- Aluminum prices rose on Monday due to supply risks after US President Donald Trump said he was set to impose new 25 percent tariffs on all steel and aluminum imports.
Three-month aluminum on the London Metal Exchange (LME) rose 0.3 percent to $2,635 a metric ton.
The aluminum contract on the Shanghai Futures Exchange (SHFE) was 0.2 percent higher at 20,530 yuan ($2,809.71) a ton.
On Sunday, Trump said he will announce new 25 percent tariffs on all steel and aluminum imports into the US which would come on top of existing metals duties, in another major escalation of his trade policy overhaul.
“At the moment we are seeing signs that maybe this could put some upward pressure in the short term on prices just because of the supply element,” said Kyle Rodda, senior financial markets analyst at Capital.com.
“One of the impacts of these tariffs is depressed global economic activity.”
Trump also said he will 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.
