Oil prices tumble as China retaliates against U.S. tariffs
Oil prices on the New York fuel exchange are falling sharply after China imposed tariffs on American goods, including oil and liquefied natural gas, brokers report.
A barrel of West Texas Intermediate oil for March delivery is priced at $72.03 on the NYMEX in New York, down by 1.54%. Brent on ICE for April is quoted at $75.28 per barrel, a drop of 0.90%.
Oil prices are falling sharply
Over the weekend, U.S. President Donald Trump signed an order imposing tariffs on goods from Canada, Mexico, and China.
The order provides for the imposition of 25% tariffs on goods from Canada and Mexico, excluding oil products taxed at a lower rate of 10%, and an additional 10% on Chinese goods.
However, on Monday, Mexican President Claudia Sheinbaum, after speaking with the U.S. president, announced that the implementation of U.S. tariffs against Mexico will be postponed by one month.
Additionally, Donald Trump and Canadian Prime Minister Justin Trudeau announced on Monday that the planned 25% tariffs on Canadian goods will be suspended for 30 days.
Trudeau pledged to increase border protection and cooperate with the U.S. against fentanyl smuggling, reiterating promises made back in December 2024.
Meanwhile, China imposed tariffs on a range of U.S. products and announced an investigation into Google shortly after Donald Trump declared the imposition of 10% tariffs on Chinese goods.
China announced retaliatory tariffs
China is to investigate Google – the American technology giant, for alleged violations of antitrust regulations – according to Tuesday's statement from the Chinese State Administration for Market Regulation.
The authorities in Beijing imposed 15% tariffs on U.S. oil and liquefied natural gas exports, and a 10% charge on American oil and agricultural equipment.
According to China's Ministry of Finance, this is Beijing's response to: "the unilateral imposition of tariffs by the US."
Charu Chanana, chief investment strategist at Saxo Markets Pte, says that the volatility we are witnessing in the oil markets reflects uncertainty about U.S. policy under President Donald Trump's administration.
She adds thar oil markets are largely driven by investor sentiment, and U.S. tariff policies play a significant role in shaping the direction of crude prices.
OPEC is not reacting for now
Meanwhile, the OPEC+ alliance countries made no changes to their oil supply policy to global markets during their Monday meeting.
Analysts point out that there is currently no response from OPEC+ to recent appeals by Donald Trump to lower oil prices by increasing production from cartel countries and their allies.
OPEC+ intends to maintain production cuts this quarter and then gradually increase crude production – in monthly increments – starting in April.
