Copper prices fell on Tuesday, weighed down by a stronger U.S. dollar and Trump’s pledge to levy more tariffs on Chinese products.
Three-month copper on the London Metal Exchange (LME) was down 0.4% at $9,010.50 per metric ton by 0442 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange eased 0.1% to 73,900 yuan ($10,187.48) a ton.
On Monday, Trump pledged an additional 10% tariff on goods from China and a 25% tariff on all products from Mexico and Canada from his first day in office.
China accounts for around half of the world’s metals consumption and manufactures most of the world’s goods.
The proposed tariffs will likely hurt economic growth and disrupt trade flows, which could eventually lower the consumption of metals.
The plan pushed the dollar higher against major currencies, making greenback-priced metals more expensive to holders of other currencies. USD/
A broker said the fall in metals prices was marginal because the market had already reacted to the tariffs plan after Trump won the White House on Nov. 5 and as some traders were expecting higher tariffs on China.
