METALS-London copper falls on US tariff woes, softer dollar caps decline

NEW DELHI, March 10 (Reuters) - London copper prices edged lower on Monday as traders assessed uncertainties surrounding U.S. tariff policies, although a weaker dollar helped limit the downside.

Three-month copper on the London Metal Exchange (LME) CMCU3 fell 0.6% to $9,552 a metric ton as of 0740 GMT.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 shed 0.6% to 78,270 yuan ($10,779.80) a ton.

U.S. President Donald Trump in an interview on Sunday declined to predict whether the U.S. could face a recession amid stock market concerns about his tariff actions on Mexico, Canada and China over fentanyl.

Trump's trade policies have fuelled fears of a trade war, which could dampen economic growth and raise prices for Americans still reeling from years of high inflation.

"Dramatic shifts in U.S. trade and foreign policy are likely to cause further disruption to metal markets," ANZ Research said.

"President Trump has placed a 25% tariff on U.S. aluminium and steel imports. A levy on copper is also on the cards. The short-term impact will be a rise in premiums as the U.S. struggles to adjust to the dislocation in physical markets."

The dollar, softer on Monday and trading near its lowest level in four months against major currencies, helped cushion the fall, as concerns over a global trade war led investors to safe havens, lifting the yen and the Swiss franc. USD/

A weaker dollar makes greenback-priced commodities less expensive for buyers holding other currencies.

Among other metals, LME aluminium CMAL3 fell 0.5% to $2,691.5 a ton, zinc CMZN3 lost 0.7% to $2,865 and nickel CMNI3 eased 0.3% to $16,450. Lead CMPB3 firmed 0.8% to $2,034.5 and tin CMSN3 gained 0.1% to $32,550.

SHFE aluminium SAFcv1 was up 0.05% to 20,895 yuan a ton, zinc SZNcv1 lost 0.9% to 23,835 yuan and lead SPBcv1 gained 0.09% to 17,490 yuan. Nickel SNIcv1 climbed 1.8% to 132,680 yuan and tin SSNcv1 firmed 0.3% to 262,810 yuan.

($1 = 7.2608 Chinese yuan)