Industrial metals hit by tariffs and weak China data

The latest economic data out of China makes for some grim reading for industrial metals markets. China’s economy has been specifically targeted by the US this year with high tariff rates in an effort to redress the trade balance between the two countries. The trade truce that has reduced the level of duties applied by both countries was renewed earlier this month until November but in the interim the economy is still showing signs of drift.

While industrial metals have been reasonably resilient, the lack of a clear demand catalyst from major consumer China and the risk of more tariff threats ahead presents a major barrier to prices testing higher levels for the balance of 2025. We expect that Q3 will represent a near-term high before prices drift into the final months of the year and start of 2026.

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