METALS-London copper trims early gains on stronger dollar, US tariff fears

Recasts paragraph 1, updates prices

NEW DELHI, Feb 26 (Reuters) - London copper gave up some early gains on Wednesday, weighed down by a stronger dollar and as caution prevailed after U.S. President Donald Trump ordered a probe into potential new tariffs on copper imports, aimed at boosting U.S. production.

Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.6% at $9,456.5 a metric ton, as of 0725 GMT, retreating from the day's high of $9,507.5 a ton.

The dollar bounced back from an 11-week low versus major peers, helped by a rebound in short-term Treasury yields, even as a run of weak economic data weighed on investor sentiment. USD/

Trump, looking to thwart what his advisers see as a move by China to dominate the global copper market, signed an order at the White House directing Commerce Secretary Howard Lutnick to start a national security probe under Section 232 of the Trade Expansion Act of 1962.

The same law was used by Trump in his first term to impose 25% global tariffs on steel and aluminium.

"Market is a bit distorted because of news flow and not reacting to fundamentals," said Soni Kumari, a commodity strategist at ANZ.

Among other metals, LME aluminium CMAL3 rose 0.3% to $2,645, LME zinc CMZN3 added 0.07% at $2,813.5, nickel CMNI3 climbed 0.1% to $15,355, lead CMPB3 gained 0.7% to $2,007, while tin CMSN3 fell 0.4% to $32,650.

SHFE aluminium SAFcv1 was up 0.3% to 20,615 yuan ($2,839.88) a ton, SHFE copper SCFcv1 eased 0.06% to 77,020 yuan, zinc SZNcv1 slid 0.5% to 23,565 yuan, nickel SNIcv1 dipped 0.5% to 124,130 yuan, lead SPBcv1 gained 0.06% to 17,140 yuan and tin SSNcv1 eased 0.6% to 261,770 yuan.

($1 = 7.2591 Chinese yuan)

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