Citi cuts 2025 base metals price forecasts on Trump trade tariffs

April 3 (Reuters) - Citi Research revised down its 2025 base metals price outlook on Thursday, citing significant headwinds for demand from tariffs announced by the Trump administration and their near-immediate implementation.

Trump announced a 10% tariff on most U.S. imports Wednesday, along with steeper levies on dozens of trade partners. The move unsettled global markets, sparking fears of stalled economic growth and rising inflation.

"We highlight copper, zinc and aluminium as the most exposed to downside given elevated positioning," analysts at Citi said in a note.

Citi has lowered its 2025 copper price forecast to $8,860/t from $9,100/t.

The Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was down 3.3% at $9,378 per metric ton by 1605 GMT, after earlier hitting $9,353, its lowest since March 4.

While metals were broadly exempted from the reciprocal tariffs, the bank still anticipates Section 232 tariffs on copper taking effect in the second quarter.

The bank also lowered its forecasts for aluminum to $2,480/t (from $2,615/t), nickel to $15,500/t (from $16,000/t), zinc to $2,630/t (from $2,750/t), lead to $1,950/t (from $1,975/t), and tin to $33,700/t (from $33,750/t).