U.S. Steel and Aluminum Tariff Hike Sparks Market Turbulence – Commerzbank

U.S. Tariff Storm Hits Steel and Aluminum Markets Again – Commerzbank

Trump Doubles Down on Metal Tariffs

The U.S. base metals market was jolted by President Trump’s announcement on Friday to double tariffs on aluminum and steel imports from 25% to 50%, with the policy set to take effect starting Wednesday. This surprise move rekindled trade war fears and introduced new volatility into global commodity markets.

"The U.S. premium paid for Aluminum surged by 45%, reaching a record $1,240 per ton," noted analysts at Commerzbank.
"COMEX Copper prices also jumped amid speculation that copper might be the next target."

Wider Trade Fallout Expected

While prices in the U.S. reacted with steep gains, global prices initially weakened as traders processed the implications. The move has aggravated already tense relations between the U.S. and China, while the European Union (EU) warned of retaliatory tariffs that could be deployed swiftly.

Commerzbank added that such “unauthorized” tariff hikes risk inflaming geopolitical tensions across multiple trade fronts, especially if copper or other industrial metals become collateral in the escalating disputes.

What’s Next for Base Metals?

With copper already rallying and aluminum premiums at historic highs, the market is bracing for more volatility. The possibility of tit-for-tat measures from China and Europe only adds to uncertainty in the global supply chain and could further drive hedging activity and inventory hoarding.

Read More on Tredu:

• Tariff Tracker: How U.S. Trade Policy Impacts Global Commodities
• Copper Prices Surge on Trade War Speculation
• Aluminum Premium Hits Record High in the U.S. – What It Means