Oil prices declined on Wednesday afternoon after an initial rise of more than $1 per barrel. The drop came as markets reacted to a major new round of global tariffs announced by U.S. President Donald Trump from the Rose Garden.
The tariff announcement shook equity markets and increased uncertainty across commodities. Both Brent and WTI crude futures lost ground after briefly climbing following Trump’s declaration. He stated that all countries exporting goods to the U.S. would face a minimum 10% tariff. Additionally, 60 nations with the largest trade deficits—including China, the European Union, and Vietnam—will be hit with even higher tariffs. According to the White House, China’s total tariff rate will rise to 54%.
Despite the broad scope of the tariffs, the energy sector was largely spared. A White House official confirmed that imports of oil, gas, and refined products are exempt. Canada, a key U.S. trade partner, also received a formal exemption. However, non-compliant goods under the Canada–U.S.–Mexico Agreement (CUSMA) will still face a 25% tariff. Non-compliant energy and potash exports from Canada will be subject to a 10% duty.
While oil markets responded with a slight decline, the broader stock market saw a sharper reaction. S&P 500 futures dropped 3.5%, and Nasdaq 100 futures fell 4.2%, slipping below their March 13 intraday lows to their lowest levels since last September.
Despite market jitters, U.S. Treasury Secretary Scott Bessent tried to reassure investors in an interview with Bloomberg TV. He described the move as “the certainty on tariffs markets have long craved” and urged investors to “embrace the clarity” of the administration’s trade policy.
For now, energy markets remain relatively shielded by the exemptions. However, traders remain cautious, fearing that global retaliation and a possible economic slowdown could eventually impact crude demand.
Related Topics:
- Equinor Launches Arctic Oilfield Johan Castberg
- Russia’s Central Bank Cautions About Long-Term Oil Price Decline
- Kenya to Start Oil and Gas Licensing Round in September