METALS-London copper set for biggest weekly loss in nearly 5 months on US tariff woes

By Michele Pek

April 4 (Reuters) - Copper prices in London fell on Friday and were set for weekly losses after U.S. President Donald Trump announced a sweeping set of tariffs, dampening the global demand outlook for metals.

Three-month copper on the London Metal Exchange CMCU3 declined 0.75% to $9,296.5 per metric ton by 0234 GMT. The contract is set for its biggest weekly drop since early November, losing 5% so far.

"The prospect of a global trade war and weaker economic growth should keep downward pressure on commodity markets," ANZ analysts said in a note.

These concerns would only worsen if impacted countries retaliate with their own levies, ensuing a global trade war, ANZ said.

Trump unveiled a sweeping set of reciprocal tariffs that were particularly heavy on China and its main trading partners.

Chinese imports will be hit with a 34% tariff, bringing the total new levy to 54%, with Beijing vowing countermeasures on Thursday.

The White House excluded copper, for which the U.S. administration is continuing a separate investigation on possible new tariffs.

It also added that other certain minerals that are not available in the U.S. would not be subject to the reciprocal tariffs. These exclusions listed zinc and tin.

Although base metals were exempted from the new levies, concerns about the latest tariffs hurting demand for raw materials is weighing on sentiment, said ING analysts.

Among other metals, LME aluminium CMAL3 lost 0.37% to $2,439 a ton, lead CMPB3 fell 0.23% to $1,951, zinc CMZN3 edged 0.07% lower to $2,711.5, tin CMSN3 was down 1.64% at $36,720 and nickel CMNI3 eased 0.08% at $15,720 a ton.

China's financial markets are closed on Friday for a public holiday. Trading will resume on Monday, April 7.

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