(Updates prices after Asia market close)

NEW DELHI, March 26 (Reuters) - Copper prices in London

dropped on Wednesday as concerns over looming U.S. tariffs

weighed on sentiment, though sharper losses were averted as

markets tracked a slight decline in the dollar.

The benchmark three-month copper on the London

Metals Exchange (LME) was down 1.2% at $9,986.50 a metric ton,

as of 0708 GMT.

The focus is on potential reciprocal tariffs that the Trump

administration might adopt on April 2, causing some nervousness

in the market.

The dollar was adrift on Wednesday, with weak U.S.

confidence data and concerns about the effect of sweeping

tariffs on U.S. growth putting the brakes on a recent bounce.

A softer dollar makes greenback-priced commodities less

expensive for buyers using other currencies.

Last month, U.S. President Donald Trump ordered a probe into

potential new tariffs on copper imports to rebuild U.S.

production of the metal critical to electric vehicles, military

hardware, power grids and many consumer goods.

Markets have been tracking the movement of the industrial

metal to the U.S. ahead of a decision.

"I agree there is significant diversion of units occurring

towards the U.S. and stockpiles there are rising," said Natalie

Scott-Gray, a senior metals analyst at StoneX.

"Much of this material will be coming from usual sources

i.e., Chile or Canada into the country ... Meanwhile, China is

at a shortage of material, as units divert to the U.S. from

producers like Chile, so they need material and could be taking

it from the LME or off-exchange sources."

Among other metals, LME aluminium was up 0.2% at

$2,615 a ton, lead fell 0.5% at $2,074, zinc dipped 0.3%

to $2,962, tin declined 0.9% to $34,750 and nickel

eased 0.4% to $16,095 a ton.

SHFE copper was up 0.3% to 82,000 yuan

($11,288.70) a ton, SHFE aluminium was up 0.3% to

20,720 yuan a ton, zinc added 0.06% at 24,155 yuan,

lead advanced 0.5% to 17,615 yuan, nickel

gained 0.5% to 129,670 yuan, and tin rose 1.3% to

277,650 yuan.

($1 = 7.2639 Chinese yuan)