CORRECTED-METALS-Metals fall on tariff worries but zinc gains on Nyrstar's output cut

(Corrects to show Trump reversed course on a pledge to double US tariffs on Canadian steel and aluminum. Adds Trump's threat of further tariffs on EU, in paragraph 2) SHANGHAI, March 13 (Reuters) - Most London metals fell on Thursday on the heels of escalating tariffs, although zinc rose to a more than seven-week high on Nyrstar cutting its production in Australia. Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by the U.S. president. Earlier on Tuesday afternoon, President Donald Trump reversed course on a pledge to double tariffs on steel and aluminum from Canada to 50%, just hours after announcing the higher tariffs. Three-month zinc on the London Metal Exchange (LME) CMZN3 , however, gained 0.5% to $2,937.5 a metric ton as of 0722 GMT. It scaled a seven-week peak earlier in the session after minerals and metals producer Nyrstar on Wednesday announced 25% production cuts at its Hobart zinc operations in Australia from April, sending prices higher. The company, owned by commodity trader Trafigura, said its Australian assets continue to face significant financial challenges due to worsening conditions in raw material markets, negative treatment charges and increased costs. The zinc smelter in Hobart, which Nyrstar bills as one of the world's largest, has a production capacity of about 260,000 metric tons a year, the company said in an email, without providing the latest output figures. LME copper CMCU3 was down 0.4% at $9,735.5 a ton, LME aluminium CMAL3 lost 0.3% to $2,695.5 a ton, lead CMPB3 fell 0.2% to $2,077, tin CMSN3 eased 0.5% to $33,270 and nickel CMNI3 declined 0.6% to $16,545. SHFE copper SCFcv1 climbed 0.6% to 79,330 yuan ($10,957.18)a metric ton, SHFE aluminium SAFcv1 was flat at 20,935 yuan a ton, zinc SZNcv1 added 0.5% to 24,050 yuan, tin SSNcv1 advanced 0.3% to 264,640 yuan, lead SPBcv1 jumped 0.7% to 17,570 yuan and nickel SNIcv1 added 0.6% to 133,310 yuan. ($1 = 7.2400 Chinese yuan renminbi) (Reporting by Violet Li and Mei Mei Chu; Editing by Sumana Nandy, Janane Venkatraman and Sonia Cheema) ((Violet.Li@thomsonreuters.com;)) (( For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C Foreign exchange rates FX= SPEED GUIDES LME/INDEX ))