Copper Retreats Amid Global Trade Tensions, China Tariffs Google
Copper's gains subsided after a significant escalation in global trade tensions. US President Donald Trump imposed a 10% tariff on goods from China, prompting Beijing to retaliate with tariffs and an investigation into Google.
As a barometer of global growth, copper initially rose 0.8% in London. However, it retreated after the implementation of tariffs, trading 0.5% higher at $9,145 a ton on the London Metal Exchange.
Other base metals also exhibited volatility. Aluminum remained steady, while iron ore gained 0.7% in Singapore. China, the world's leading consumer of commodities, remains closed for the Lunar New Year holiday and will reopen on Wednesday.
The latest round of tariffs poses a threat to global metals consumption by dampening economic growth. Asia's largest economy also implemented export controls on tungsten-related materials in response to the US actions.
The developments underscore the turbulent start to the year for base metals, as trade tensions and concerns about Chinese demand persist.