Copper pressured by US tariff threat

LONDON: Copper prices came under pressure on Monday from the threat of tariffs on US imports, but stronger industrial activity in China raised hopes of stronger demand.

Benchmark copper on the London Metal Exchange (LME) was up 0.1% at $9,368 a metric ton by 1025 GMT. US President Donald Trump is planning to add another 10% tariff on Chinese goods on Tuesday, effectively doubling duties imposed on February 4. China’s economic health is crucial for base metals demand because the country is the world’s largest consumer and relies heavily on these metals for its vast manufacturing sector. “China’s PMIs suggest demand may recover, but the tariff cloud is hanging over everything,” one copper trader said. China’s official purchasing managers index (PMI) expanded in February after contracting the previous month after a solid rise in production, but the index for new export orders contracted.