Producers of metals and other raw materials fell after a new front opened in the global trade war. President Donald Trump said he would raise tariffs on steel and aluminum imports from Brazil and Argentina.
The price of aluminum rose in London, but other industrial metals prices fell. The threat was interpreted as a sign that the Trump administration plans to stick to protectionist tactics in foreign economic policy, despite an apparent compromise with China.
"For many Brazilians, this smells like revenge for their country's soybean farmers bonanza - they have benefitted enormously from the U.S.-China trade war by replacing U.S. soybeans sales into China," said Kim Catechis, Head of Investment Strategy at Legg Mason affiliate Martin Currie, in a note to clients.
Mr. Trump accused Brazil and Argentina of devaluing their currencies, adding that the moves hurt U.S. farmers.
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(END) Dow Jones Newswires
December 02, 2019 16:32 ET (21:32 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.