METALS-London copper retreats on stronger dollar, Trump tariff fears

Feb 21 (Reuters) - London copper eased on Friday, as the dollar strengthened and market participants were worried about metal demand after U.S. President Donald Trump threatened earlier this week to impose tariffs on cars and semiconductors chips.

Three-month copper on the London Metal Exchange (LME) CMCU3 eased 0.3% to $9,531 a metric ton by 0201 GMT.

The dollar index .DXY was up 0.2%, making greenback-priced metals costlier for other currency holders. USD/

Trump said he would unveil fresh tariffs over the next month or sooner, adding lumber and forest products to previous plans for duties on imported cars, semiconductors and pharmaceuticals.

"Trump's proposed tariffs will limit demand growth, in our view... Aggressive import tariffs can weigh on capex growth as business confidence will remain subdued," ANZ said in a note.

"China's stimulatory measures bode well for industrial metals, but the market will rely on data to confirm the positive impact."

Attention will also be on China to see if the country unveils more stimulus at its National People's Congress meeting in March, given the tariff war and concerns about slow demand.

Meanwhile, Chilean state-run Codelco and London-listed Anglo American signed a memorandum of understanding to jointly operate neighbouring copper mines in central Chile.

LME aluminium CMAL3 held firm at a three-month high, first hit on Thursday on EU envoys' agreement to ban Russian primary aluminium imports in a fresh sanctions package.

LME zinc CMZN3 held steady at $2,919, nickel CMNI3 lost 0.4% to $15,605, tin CMSN3 fell 0.2% to $33,335 and lead CMPB3 firmed 0.5% to $2,003.

SHFE aluminium SAFcv1 rose 0.6% to 20,920 yuan ($2,883.81) a ton, SHFE copper SCFcv1 was unchanged at 77,360 yuan, zinc SZNcv1 climbed 0.5% to 24,095 yuan, nickel SNIcv1 rose 0.4% to 125,140 yuan, lead SPBcv1 gained 0.4% to 17,120 yuan and tin SSNcv1 firmed 1.2% to 264,070 yuan.

($1 = 7.2543 Chinese yuan)

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