Oil prices dropped by 8% on Friday, marking their steepest single-day fall since the height of the COVID-19 pandemic in 2021, as escalating trade tensions between the United States and China rattled global markets, Reuters reported.
The plunge comes in the wake of China’s announcement that it will impose additional tariffs of 34% on all U.S. goods starting April 10, in response to a fresh wave of tariffs introduced by President Donald Trump earlier this week. The new measures have triggered fears of a full-scale trade war, with several countries now preparing their own retaliatory actions.
While imports of oil, gas, and refined products have been exempted from the U.S. administration’s sweeping tariff hikes, analysts warn that the broader economic impact could be significant. The policies are expected to fuel inflation, dampen global economic growth, and intensify ongoing trade disputes – all factors contributing to the sharp decline in oil prices.
Global financial markets also took a hit amid growing uncertainty, with investors bracing for further volatility if trade tensions continue to escalate. (NewsWire)
The post Oil prices fall as China retaliates with tariffs on U.S. appeared first on Newswire.