METALS-London copper drops as Trump's tariffs raise demand concerns

SHANGHAI, April 3 (Reuters) - Copper prices in London dropped more than 1.5% on Thursday, as sweeping reciprocal tariffs from U.S. President Donald Trump sparked concerns about global demand for metals.

The benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was down 1.6% at $9,547 per metric ton, as of 0131 GMT. Earlier in the day, the contract hit $9,507, its lowest point since March 11.

Trump introduced on Wednesday a minimum tariff of 10% 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 U.S. 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 aluminium CMAL3 lost 1.4% to $2,456 a ton, lead CMPB3 fell 0.5% to $1,959, zinc slid 1.1% to $2,750, tin CMSN3 was down 2.4% at $37,030 and nickel CMNI3 was down 0.7% at $15,850 a ton.

SHFE copper SCFcv1 fell 1.1% to 78,970 yuan a ton, SHFE aluminium SAFcv1 rose 0.1% to 20,455 yuan a ton, zinc SZNcv1 lost 1.3% to 23,055 yuan, lead SPBcv1 slid 0.6% to 17,240 yuan, while nickel SNIcv1 was down 1.1% to 127,890 yuan, tin SSNcv1 fell 0.6% to 291,940 yuan.

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