Key topics.Copper, aluminum, iron ore drop after Trump's tariff announcement.China's manufacturing slump adds pressure on metals demand.Global growth fears and inflation risk weigh on market outlook..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here..If you prefer WhatsApp for updates, sign up for the BizNews channel here..By Katharine Gemmell and Annie Lee___STEADY_PAYWALL___.Copper, aluminum and iron ore led metals lower after President Donald Trump imposed tariffs on China, Canada and Mexico, threatening a trade war that could sap global economic growth. .The red metal, an industrial bellwether, fell as much as 1.5% on the London Metal Exchange, before paring some losses. Steelmaking staple iron ore dropped by as much as 3.5% in Singapore, while Chinese markets remained closed for the Lunar New Year holidays..Trump announced a 10% levy on imports from China, as well as 25% tariffs on Canada and Mexico, that will take effect from Tuesday. The impact on the dollar, with a gauge up by as much as 1.3%, also weighed on metals as a costlier US currency makes them more expensive for most buyers. China's commerce ministry vowed "corresponding countermeasures," without elaborating, and also said it would file a complaint at the World Trade Organization. .A global trade war may spur inflation, keep interest rates higher for longer, and will be a headwind for global growth and metals demand. It could also lead to nations restricting exports of critical minerals. China, the world's largest consumer of most metals, is still struggling to revive economic growth that hasn't fully recovered from Covid-19, although it will now likely step up measures to stimulate expansion..China's manufacturing activity unexpectedly declined for a second straight month in January, according to a report released by Caixin and S&P Global on Monday. The reading reinforced the urgency for Beijing to boost economic stimulus in the face of US tariffs. .Read more: with 25% counter-tariffs on $107bn US imports."While the energy transition and a recovery in economic growth in Europe would support metals demand, Trump's proposed tariffs will limit demand growth" as business confidence will stay subdued, ANZ Group Holdings Ltd. said in a note by analysts Daniel Hynes and Soni Kumari. Credit growth in China remains depressed, but deployment of additional stimulus will be a "wild card for metals demand," they said..Copper fell 1.2% to $8,942.50 on the LME as of 7:24 a.m. in London, after dropping 2.5% last week. Aluminum slumped 0.8% to $2,572.50 and zinc declined 0.5%. Iron ore lost 1.4% to $104.25 a ton in Singapore..China's domestic markets reopen on Wednesday..The impact of tariffs on commodity prices depends on several factors, the most important of which is how if affects the economies of China and other emerging markets, Jefferies analyst Christopher LaFemina said in a note. The one market that is likely to benefit is US steel, as more expensive imports should support higher domestic prices, he said..Read also:.Trump's tariffs and energy orders: What they mean for SA's economy – Kevin Lings🔒Trump warns BRICS: No new currency or face tariffsTrump talks China, tariffs, aliens, and staff mistakes on Joe Rogan podcast.© 2025 Bloomberg L.P.
