METALS-Base metals fall as higher US import tariff for China, other countries loom

By Polina Devitt

LONDON, April 8 (Reuters) - Copper and aluminium prices fell in London on Tuesday as hopes for speedy talks on tariffs between the United States and other countries faded after a White House official said the U.S. would impose a 104% tariff on China within hours.

Benchmark three-month copper CMCU3 on the London Metal Exchange fell 2.2% to $8,539.50 a metric ton by 1722 GMT.

The growth-dependent metal is down 12% since President Donald Trump threw global markets into turmoil with his "reciprocal tariffs" announcement last week.

These higher tariff rates are due to take effect on Wednesday, and, according to Citi, would hit global copper consumption and manufacturing sentiment in the second quarter.

Trump has already implemented a 10% tariff on almost all imports to the world's largest consumer market, and targeted tariffs of up to 50% on many trading partners.

Leading metals consumer China called this blackmail and said it would "fight to the end" after Trump threatened to ratchet up tariffs to 104% in response to China's decision to match the duties Trump announced last week.

The U.S. will impose the 104% tariff on China from 12:01 AM ET (0401 GMT) on Wednesday, a White House official said on Tuesday.

The White House also said that nearly 70 countries had reached out to begin negotiation over U.S. tariffs, but reciprocal tariffs would continue to go in effect as deals were negotiated.

Copper is excluded from the reciprocal tariffs but is subject to a separate ongoing investigation of possible new U.S. import tariffs.

Providing some support, the recent falls in copper and aluminium have spurred consumer demand, with copper buyers in China particularly active, analysts said.

The Yangshan premium SMM-CUYP-CN, a closely watched indicator of China's appetite for copper imports, has jumped 26% since Trump's tariffs announcement to $87 a ton, its highest since December 2023.

LME aluminium CMAL3 lost 1.4% to $2,338 a ton. Already subject to a 25% U.S. import tariff, aluminium has fallen for 14 sessions running and is down 12% since March 19.

In other metals, tin CMSN3 slid 5.0% to $32,200 a ton as it continued to catch up with the rest of the group's fall.

Concerns about near-term tin supply eased after daily LME data showed that total stocks rose to 3,435 tons with 500 tons delivered to warehouses in Malaysia. The premium on the LME cash contract over three-month tin CMSN0-3 was last at $50 a ton, down from $234 on Monday.

Zinc CMZN3 fell 2.5% to $2,547.50 a ton, its one-year low, lead CMPB3 slid 0.1% to $1,865.50 and nickel CMNI3 lost 1.1% to $14,190.

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