1st August, 2019
Oil prices were the immediate casualties of the escalated tariff war declared on Thursday against China by US President Donald Trump.
The prices headed southward after the announcement by Trump that he would from 1 September impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports.
Those exports have so far been spared from Trump’s tariffs. With the existing 25 percent tariffs on $250 billion of imports, a total of $550b worth of Chinese exports to the United States will now be taxed.
Oil prices plunged by more than 8 percent immediately after the news, pushing WTI below $55 per barrel and Brent down to $61.
Analysts said the tariff announcement was ill-timed for the oil market, which was already heading south due to the disappointing result from the U.S. Federal Reserve, which cut interest rates.