Oil prices decline as US president imposes trade restrictions

Oil prices fell on Thursday after President Donald Trump announced stringent new tariffs on imports from top trading partners, including the EU and China. Bloomberg reports the duties could dampen global energy demand.

The agency reports that Beijing has pledged retaliatory measures against the US, though the Chinese government has not provided specifics.

As Donald Trump stated, import tariffs will not apply to energy, meaning they will not directly impact markets. Additionally, the US President announced that a 10% levy will be imposed on all exports to the country. Extra duties will also target 60 nations with the largest trade imbalances with the United States.

The US administration imposed an additional 34% tariff on Chinese goods, on top of existing duties, along with a 20% levy on the EU.

The discount of Canadian heavy crude relative to WTI crude narrowed to its lowest level since 2020, supported by the tariff exemption. Meanwhile, broader negative market sentiment weighed on gasoline prices, with the US seeing a 3% decline.