METALS-Metals fall on dollar strength after Trump's tariff talks

(Updates prices) SHANGHAI, Jan 21 (Reuters) - Most base metals trended lower on Tuesday due to a rebound in the U.S. dollar amid concerns over the economic impact of President Donald Trump's tariff talk. Three-month copper CMCU3 on the London Metal Exchange (LME) fell 0.4% to $9,243 a metric ton by 0706 GMT. The dollar rebounded after Trump suggested the U.S. could impose tariffs on Canada and Mexico in the near future, though details were lacking. The greenback index was last at 108.54, up 0.5% from Monday, but slightly below the 26-month high of 110.17 touched last week. In his inauguration address, Trump neither targetted China nor did he immediately impose tariffs as previously promised. Instead, he directed federal agencies to "investigate and remedy" persistent U.S. trade deficits, unfair trade practices and currency manipulation by other countries. "We are vigilantly watching for potential policy shifts from the Trump administration, as these could increase volatility in the markets," a trader said. A stronger dollar makes greenback-priced commodities more expensive for holders of other currencies. Meanwhile, the Federal Reserve will likely hold interest rates steady at its Jan. 29 meeting and resume reductions in March, according to a slim majority of economists polled by Reuters. LME aluminium CMAL3 eased 0.8% to $2,671, tin CMSN3 lost 0.1% to $30,375, nickel CMNI3 fell 0.5% to $16,025, lead CMPB3 shed 1.4% to $1,957 and zinc CMZN3 slid 0.8% to $2,946. The most-active copper contract on the SHFE SCFcv1 dropped 0.1% to 75,630 yuan ($10,394.88) a ton at the close of Asia afternoon trade. SHFE aluminium SAFcv1 fell 0.1% to 20,415 yuan a ton, zinc SZNcv1 slid 0.1% to 24,200 yuan, lead SPBcv1 lost 0.3% to 16,690 yuan, while tin SSNcv1 advanced 1.7% to 252,450 yuan and nickel SNIcv1 added 0.2% to 128,090 yuan. For the top stories in metals and other news, click TOP/MTL or MET/L ($1 = 7.2757 Chinese yuan renminbi) (Reporting by Violet Li and Mei Mei Chu; Editing by Sumana Nandy and Savio D'Souza) (([email protected];)) (( 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 ))