Aluminium slides as aide quits

ALUMINIUM prices slid yesterday as the prospect of US tariffs were bolstered by the resignation of Gary Cohn, a key advocate for free trade in the White House, while base metals generally came under pressure from worries about a trade war.

Benchmark aluminium prices on the London Metal Exchange were down 0.9% at $2 127 a ton, towards the lows seen last week after US plans for a 10% levy on aluminium were announced.

SP Angel analyst John Meyer said: “Nobody should be surprised by the idea of taxes on metal imports in the United States.”

Europe has drawn up a list of US products from bourbon to Harley-Davidson motorbikes on which to apply tariffs if US President Donald Trump follows through on a plan to impose global duties on aluminium and steel, EU sources said.

Canada will also retaliate against any US tariffs on steel and aluminium products, officials there say.

Cohn, US President Donald Trump’s top economic adviser, said on Tuesday he would resign, which came after he lost a battle over import tariffs.

INTL FCStone analyst Edward Meir said: “Apart from a few US steel mills and a number of US domiciled aluminum smelters, most other companies, trade and industry associations, as well as most of Congress, are all vehemently opposed.

“Unfortunately for the antitariff crowd, the president does have the legal authority to impose these duties without Congress’s approval as long as he finds authority in existing statutes.” – Reuters