METALS-London metals rise as Trump's tariff reprieve eases trade war jitters

SHANGHAI, April 10 (Reuters) - Base metal prices in London climbed on Thursday, supported by improved market sentiment after U.S. President Donald Trump decided to temporarily lower the hefty duties he recently imposed on several countries.

The benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was up 3.5% at $8,910 per metric ton, as of 0130 GMT.

LME copper has tumbled 12% since touching its highest point in more than nine months on March 26 at $10,164.50, prior to the escalation of trade tensions.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 2.8% to 74,540 yuan per metric ton, a rebound from an eight-month low on Wednesday.

Trump on Wednesday announced a 90-day pause on many of his new tariffs in a shock reversal after a days-long market rout that erased trillions of dollars from global stocks.

However, Trump further escalated pressure on China by threatening to raise tariffs on top metal consumer China to 125%, up from the 104% rate set on Wednesday, following Beijing's decision to increase additional duties on American products to 84%.

"Trump's sudden shift in tariff policy caught the market off guard. Investors, initially pessimistic about economic prospects, found renewed confidence with the reprieve. However, this boost may be fleeting given his unpredictable stance," a base metals trader said.

SHFE aluminium SAFcv1 rose 1.9% to 19,815 yuan a ton, zinc SZNcv1 added 2% to 22,495 yuan, lead SPBcv1 gained 1.2% to 16,660 yuan, while nickel SNIcv1 was up 0.7% at 119,660 yuan, tin SSNcv1 fell 3.0% to 251,600 yuan.

Among other metals, LME aluminium CMAL3 added 4.0% to $2,407 a ton, lead CMPB3 rose 2.3% to $1,882, tin CMSN3 was up 4.5% at $31,150, zinc CMZN3 up 2.6% to $2,625, and nickel CMNI3 was up 2.9% at $14,485 a ton.

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