With the exception of iron, the “basic metals” are most affected by Trump’s return

Base metal prices fell significantly after US President Donald Trump said he was likely to impose tariffs on Mexico and Canada by February 1, which hurt market sentiment even as he refrained from imposing tariffs on China, according to what Bloomberg reported.

The impact of Trump’s return on the markets

On his first day in office, Trump said he might impose tariffs of up to 25% on goods from the two neighboring countries.
This sent the dollar index higher, which fell sharply on Monday, making the metals more expensive for most buyers.
Read also: How does Donald Trump’s return to the White House affect the global economy?

Base metals suffer

The prospect of renewed global trade conflict, coupled with China’s already troubled economy, has weighed on metals markets in recent months with the price of copper falling 11% in the latest quarter.
Although Trump’s initially cautious approach toward China provides some calm, it leaves traders confused about how his policies toward Beijing might take shape.

“A sword hanging over the head”

Regarding this, Jia Cheng, head of trading at Shanghai Suzhou Jioying Investment Management Company, commented: “The tariffs that Trump is supposed to impose on China at a later time are still a sword hanging over heads, even if there are no tariffs in executive orders for China by Trump in the future.” “First day.”
Jia said traders are also cautious as China approaches the Lunar New Year holiday and with a Federal Reserve monetary policy meeting also on the agenda in the coming days.

The new US president ordered his staff to investigate whether Beijing had complied with a trade agreement signed during his first term, according to a copy of the documents seen by Bloomberg.
Trump said he would hold “meetings and calls” with Chinese President Xi Jinping.

London Metal Exchange and lower prices

On the London Metal Exchange, the price of lead fell by more than 1%, while the price of aluminum, which closed on Monday at its highest levels in more than two months, fell by 0.8% to $2,670 per ton, and zinc fell by 0.6%.
Contrary to expectations, prices of iron ore, used in the steel industry and closely linked to demand in China, rose by about 1.5% to $105.35, the highest level for the extremely important metal since December 17.