Metals trend lower on Trump tariff threats

Prices of base metals declined on Thursday as investors fretted about U.S. President Donald Trump’s policy plans, following his threats to impose tariffs on U.S. imports.

The three-month copper on the London Metal Exchange (LME) slid 0.7% to $9,161 a metric ton by 0704 GMT.

The most-active copper contract on the SHFE slid 0.8% to 74,960 yuan ($10,291.76) a ton by the close of Asia afternoon trade.

Metal prices began to fall after Trump said his administration was discussing imposing a 10% tariff on imports from China starting Feb. 1, the same day that he previously said Mexico and Canada would face levies of around 25%.

He also vowed duties on European imports, without providing further details.

Trump has also threatened “high levels of taxes, tariffs and sanctions on anything being sold by Russia to the United States and various other participating countries” if a deal to end the war in Ukraine is not reached soon.

The U.S. dollar dipped to a more than three-week low earlier in the session, making greenback-priced commodities less expensive for holders of other currencies.

The dollar index was last at 108.3, below the 26-month high of 110.17 touched last week.

“We are taking a wait-and-see stance nowadays as we are not sure what kind of policies Trump might impose,” a trader said.

LME aluminium eased 0.9% to $2,610, tin lost 0.8% to $30,030, nickel fell 0.7% to $15,605, lead shed 0.5% to $1,958 and zinc dipped 1.3% to $2,863.

SHFE aluminium fell 0.9% to 20,130 yuan a ton, nickel dipped 2.8% to 123,960 yuan, zinc slid 0.9% to 20,130 yuan, lead was unchanged at 16,705 yuan and tin eased 0.9% to 247,610 yuan.
Source: Reuters