SHANGHAI- Copper prices in London dropped more than 1.5 percent on Thursday, as sweeping reciprocal tariffs from US President Donald Trump sparked concerns about global demand for metals.
The benchmark three-month copper on the London Metal Exchange (LME) was down 1.6 percent at $9,547 per metric ton. Earlier in the day, the contract hit $9,507, its lowest point since March 11.
Trump introduced on Wednesday a minimum tariff of 10 percent on most goods imported to the United States.
The tariffs include significantly higher duties on products from dozens of countries, initiating a global trade war that could potentially increase inflation and hinder economic growth in the US and globally.
“The reciprocal tariffs have sent shockwaves through today’s futures and stock markets. People are on edge, anticipating what retaliatory tariffs other countries might levy. Above all, the specter of an escalating trade war is exerting a dominant influence over the markets,” a base metals trader said.
Among other metals, LME aluminum lost 1.4 percent to $2,456 a ton, lead fell 0.5 percent to $1,959, zinc slid 1.1 percent to $2,750, tin was down 2.4 percent at $37,030 and nickel was down 0.7 percent at $15,850 a ton.
