fall as tariff tensions escalate

Three-month copper on the London Metal Exchange (LME) fell 0.7%.

Three-month copper on the London Metal Exchange (LME) fell 0.7% to $9,351 a tonne, falling below its 21-day moving average of $9,411.

Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of tariffs on Chinese goods to 20%.

China has retaliated by raising import tariffs on US agricultural and food products, bringing the world's two top economies one step closer to a full-blown trade war.

"We have two big things coming up," said Dan Smith, head of research at Amalgamated Metal Trading. "There are signs of a trade war, which is very bearish for the metals market, and there is also the prospect of a resolution to the conflict in Ukraine, a peace deal that would improve market confidence and remove the risk of a war spiraling out of control in regions like Europe."

“People are struggling to trade those two prospects. Traditionally, traders use a ‘buy the rumor, sell the fact’ strategy, but now they are ignoring the rumor and trading the fact,” Smith added.

US President Donald Trump has suspended military aid to Ukraine after his meeting with Ukrainian President Volodymyr Zelenskiy last week, according to a White House official. A Kremlin spokesman expressed caution about reports of a US aid freeze, saying the details needed to be worked out.

Further limiting the reaction for base metals is the start of China’s National People’s Congress (NPC), which coincides with the resumption of tariff exchanges. Traders expect the NPC to announce more stimulus measures to support the economy of the world’s top metals consumer.

LME aluminum prices fell 0.2% to $2,606 a tonne, zinc prices fell 0.8% to $2,818.50, lead prices were stable at $1,991.50, nickel prices fell 0.1% to $15,870, while tin prices rose 0.7% to $31,735.

Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-5-3-giam-khi-cang-thang-thue-quan-leo-thang.html