Oil prices continue their downward movement on Thursday as US President Donald Trump’s 25% tariff on steel and aluminum imports took effect, alongside ongoing efforts towards a ceasefire in the Russia-Ukraine War.
The international benchmark Brent crude decreased by 0.19% trading at $70.56 per barrel at 10.50 a.m. local time (0750 GMT), down from $70.70 at the close of the previous session.
The US benchmark West Texas Intermediate fell by 0.05%, settling at $67.40 per barrel, compared to its prior session close of $67.44.
The start of the 25% tariff on steel and aluminum imports has raised concerns that it could lead to economic stagnation in the US, the world’s largest oil-consuming country, and reduce demand.
In addition to these tariffs, Trump, who imposed separate tariffs on Canada, Mexico and China, plans to impose ‘reciprocal’ tariffs on trade partners such as the European Union (EU), Brazil and South Korea as of April 2.
While the EU retaliated against these tariffs, EU Commission President Ursula von der Leyen announced that they have taken measures worth €26 billion in response to these practices.
Canadian Finance Minister Dominic LeBlanc also announced a 25% tariff on imports of 29.8 billion Canadian dollars ($20.7 billion) in retaliation to the US steel and aluminum tariffs.
Experts warn that the reciprocal tariff decisions could slow economic growth and suppress energy demand in the short term, and trigger a new trade war in the long term.
