Oil prices drop by 3% following Trump’s new tariff announcement
Oil prices saw a significant decline on Thursday, falling by as much as 3% after U.S. President Donald Trump unveiled new tariffs.
Investors expressed concerns that the tariffs could escalate the global trade war, potentially hindering economic growth and reducing fuel demand, News.Az reports, citing Reuters.
Brent futures were down $1.97, or 2.63%, to $72.98 a barrel by 0635 GMT after dropping by as much as 3.2% earlier, the biggest daily percentage decline since March 5. U.S. West Texas Intermediate crude futures were down $2.01, or 2.80%, to $69.70 after slipping by as much as 3.4% earlier.
Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the United States, the world's biggest oil consumer, with much higher duties on products from dozens of countries, kicking into high gear a global trade war that threatens to drive up inflation and stall U.S. and worldwide economic growth.
Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.
The tariffs sent markets reeling on Thursday, with Japan's Nikkei plunging to an eight-month low, China's yuan dropped to its lowest levels in seven weeks and stock markets slumped in early Asia trade.
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