Base metals declined yesterday after US President Trump said, on his first day back in power, that he will likely impose tariffs as high as 25% on Mexico and Canada by 1 February, ING’s commodity analysts Warren Patterson and Ewa Manthey note.

Downside risks for industrial metals increase

“Trump also indicated that he was still considering a universal tariff on all imports to the US, but said he was ‘not ready for that yet’. This has raised prospects of renewed global trade conflict once again.”

“Tariffs are the biggest risk to our industrial metals outlook. We believe with President Trump back in the White House, the downside risks have increased for industrial metals.”