RUBBER-Japan futures ease as fresh Trump tariffs spark trade war concerns

SINGAPORE, March 4 (Reuters) -

• Japanese rubber futures inched lower on Tuesday as fresh U.S. tariffs on Canada, Mexico and top rubber consumer China came into effect, although a tightening supply outlook capped the losses.

• The Osaka Exchange (OSE) rubber contract for August delivery JRUc6, 0#2JRU: ended daytime trade 1 yen lower, or 0.28%, at 361.2 yen ($2.42) per kg.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery SNRv1 edged 90 yuan lower, or 0.51%, to 17,665 yuan ($2,425.18) per metric ton.

• The most-active April butadiene rubber contract on the SHFE SHBRv1 fell 360 yuan, or 2.25%, to 13,765 yuan ($1,889.76) per ton.

• U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada kicked in, along with a doubling of duties on Chinese goods to 20%.

• Shares of automakers General Motors GM.N and Ford F.N fell earlier on Tuesday.

• The automobile sector is particularly likely to feel the impact of tariffs due to the supply chains that criss-cross the three countries, as well as an expected increase in vehicle prices, said Gustavo Flores-Macias, a public policy professor at Cornell University.

• Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.

• China retaliated with 10%-15% hikes to import levies covering a range of American agricultural and food products, while also placing 25 U.S. firms under export and investment restrictions.

• Rubber production areas in China have stopped harvesting while supply in southern Thailand has shrunk, pushing global natural rubber supply to a seasonal low, Chinese commodities data provider Longzhong Information said in a note.

• Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts until September.

• The front-month rubber contract on Singapore Exchange's SICOM platform for March delivery STFc1 last traded at 203.7 U.S. cents per kg, down 0.5%.

($1 = 149.5200 yen)

($1 = 7.2840 Chinese yuan)