[Ferro-Alloys.com]Base metal prices on the Shanghai Futures Exchange traded sharply lower during Asian morning trading on Friday March 23 after United States President Donald Trump signed off on import tariffs for Chinese products, triggering fears of a global trade war and slowdown in global economic growth.

The most-traded May copper contract on the SHFE was at 50,140 yuan ($7,922) per tonne as of 10.44am Shanghai time, down by 1,100 yuan per tonne from Thursday’s closing price, with around 316,000 lots of the contract traded.

A risk-off tone ensued among risk assets after President Trump on Thursday signed a memorandum that would implement 25% tariffs on up to $60 billion in imports from China. A list of products that will attract the tariffs will be announced within 15 days, but is expected to include items in aerospace, information technology and machinery.

This follows Trump’s recent sign off on import tariffs on steel and aluminium imports into the US.

China retaliated against the earlier steel and aluminium tariffs, announcing on Friday that it will impose tariffs on a range of US products including a 25% import tax on recycled aluminium and 15% on seamless steel tubes.

China’s Ministry of Commerce in a statement on Friday also called the US’ latest planned tariffs on its imports “a disregard of World Trade Organization rules” and “typical unilateralism and trade protectionism”.

“The trade wars have officially started. The question moving forward is how far and quickly they will escalate,” financial broker IG said in a report on Friday.

There is some respite, however, on news that more countries would be exempted from the US Section 232 tariffs on steel and aluminium imports. The US Trade Representative (USTR) has said the European Union, Argentina, Australia, Brazil and South Korea will be exempted from the US Section 232 tariffs on steel and aluminium imports - at least temporarily - with other countries in line to begin negotiations.

“The 15-day grace period granted for the [Section 232] metals tariffs is due to end. It is highly likely that China will feel the pinch from this tax as well - as will likely many other smaller countries who have little leverage to negotiate for a favor. As we look forward, how aggressively these countries respond to their counterparts’ actions will determine how quickly this situation will weigh on the globe,” IG added.

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• [Editor:Jiang Li Juan ]