Copper declined after US President Donald Trump said he planned to impose import tariffs on the metal, as well as aluminum and steel, raising fears of trade wars and spurring further gains in the dollar.
Trump made the pledge in a speech in which he also threatened levies on computer chips, semiconductors and pharmaceuticals, in an attempt to boost domestic manufacturing. Separately, The Financial Times reported that Treasury Secretary Scott Bessent is pushing for universal tariffs on US imports to start at 2.5% and rise gradually, citing unnamed sources.
The dollar strengthened, making commodities priced in the currency more expensive for most buyers, as the prospect of trade wars bolstered demand for haven assets. Most metals fell sharply on Monday as risk aversion swept through markets due to a rout in technology stocks.
Copper declined 0.2% to $9 077 a ton on the London Metal Exchange as of 9:12 a.m. in Shanghai, following a 2% drop on Monday. Aluminum was steady and zinc lost 0.1%. Steelmaking staple iron ore fell 0.3% to $103.35 a ton in Singapore.