METALS-London metals rise as Trump's tariff pause eases trade war jitters

SHANGHAI, April 10 (Reuters) - Base metals in London climbed on Thursday, supported by improved market sentiment after U.S. President Donald Trump decided to temporarily pause the recently imposed hefty duties on several countries.

The benchmark three-month copper CMCU3 on the London Metal Exchange (LME) gained 3.5% to $8,919 per metric ton as of 0742 GMT.

LME copper has tumbled 12% since touching $10,164.50, its highest point in more than nine months on March 26, before the escalation of trade tensions.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 3.9% to 75,300 yuan ($10,254.66)per metric ton, a rebound from an eight-month low hit on Wednesday.

On Wednesday, Trump announced a 90-day pause on many of his new tariffs in a stunning reversal after a days-long market rout that erased trillions of dollars from global stocks.

However, Trump further pressured China by raising tariffs on the top metals consumer to 125%, up from the earlier 104%, following Beijing's decision to hike duties on American imports to 84%.

"Trump's sudden shift in tariff policy caught the market off guard. Investors, initially pessimistic about economic prospects, found renewed confidence with the reprieve," a trader said.

"However, this boost may be fleeting given his unpredictable stance."

SHFE aluminium SAFcv1 rose 3.9% to 19,805 yuan a ton, zinc SZNcv1 added 2.9% to 22,705 yuan, lead SPBcv1 gained 2.0% to 16,800 yuan, nickel SNIcv1 climbed 2.3% at 121,600 yuan, while tin SSNcv1 fell 0.9% to 257,200 yuan.

Among other metals, LME aluminium CMAL3 added 2.7% to $2,378 a ton, lead CMPB3 rose 3.2% to $1,901, tin CMSN3 gained 6.3% to $31,710, zinc CMZN3 up 2.8% to $2,629 and nickel CMNI3 was up 4.5% at $14,720 a ton.

($1 = 7.3430 Chinese yuan renminbi)

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