FX.co ★ Aluminum Futures Rise on Higher Tariffs

Aluminum futures experienced a modest increase, reaching $2,453 per ton in London. However, prices in the United States saw a significant surge following President Trump's announcement of plans to double tariffs on imported aluminum and steel to 50%, effective June 4. This development triggered a 54% jump in aluminum prices for American factories, marking the highest level in over a decade. As a result, US buyers may find themselves paying almost 50% more than their global counterparts, which could lead to increased costs for everyday products such as cans, cars, and windows. While Trump asserts that this measure will strengthen US manufacturing, industry experts caution that with more than 80% of US aluminum being imported, the primary outcome may be higher consumer prices. Simultaneously, tensions with China have rekindled, as the country accuses the US of violating a recent trade agreement and pledges to retaliate. Meanwhile, China's economy is exhibiting signs of strain, with factory activity contracting for the second consecutive month in May. The official manufacturing index showed a slight improvement to 49.5, yet it remains below the critical 50 mark, which indicates contraction and heightens the likelihood of government intervention through stimulus measures.