(Bloomberg) -- Copper and other base metals retreated Tuesday as the dollar strengthened after US President-elect Donald Trump vowed additional tariffs.
Trump said the US will impose additional tariffs of 10% on Chinese goods and place 25% levies on imports from Mexico and Canada, in posts to his Truth Social network. That sent the Bloomberg Dollar Spot Index up 0.7%, before the gauge eased slightly, while shares in Asia dropped.
Base metals have been under pressure since Trump’s election victory, which sparked a rally in the greenback, making metals pricier for many buyers. Concerns over potential trade disputes, and a weak demand outlook from China, the top consumer of metals, have also weighed on prices.
“China’s activity pulled back in the first half of November after reaching its highest level in a year in the prior two weeks,” Bloomberg Intelligence said in a note, citing its own activity tracker. “The pullback suggests the economy lacks momentum and could have a hard time recovering until pledged policy support is fully rolled out.”
Copper fell 0.6% to $8,993.5 a ton on the London Metal Exchange as of 10:40 a.m. in Singapore. Aluminum slid 0.9%, while nickel dipped 0.4%.
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