Copper Edges Lower After US-China Trade Tensions Escalate
Copper prices retreated after a surge in global trade tensions, as US President Donald Trump imposed a 10% tariff on Chinese goods. China responded with retaliatory tariffs and an investigation into Google.
Copper, a barometer of global economic growth, traded marginally higher in London after earlier reaching a 0.8% gain. Shortly after Trump's tariff announcement, China imposed tariffs on various US products, sending metals prices into a downturn.
Base metals have faced a volatile start to the year, impacted by trade war developments and concerns over Chinese demand. On Monday, the US threatened and subsequently deferred tariffs against Mexico and Canada, causing price swings.
The latest round of tariffs threatens to curb global metals consumption by decelerating economic growth. China, Asia's largest economy, has also imposed export controls on tungsten-related materials in response to US tariffs.
As of 1:56 p.m. Singapore time, copper was up 0.5% at $9,145 a ton on the London Metal Exchange, after fluctuating by over $200 on Monday. Aluminum prices remained unchanged, while iron ore gained 0.7% to $105 in Singapore.
Chinese markets remain closed for the Lunar New Year holiday and will resume trading on Wednesday.