Published by Global Banking & Finance Review®
Posted on April 10, 2025
3 min readLast updated: January 24, 2026
Add as preferred source on GoogleOil prices dropped over 3% as investors reassessed Trump's tariff policies, impacting trade relations with China and affecting global oil demand.
By Shariq Khan
(Reuters) -Oil prices settled more than $2 per barrel lower on Thursday, wiping out the last session's rally, as investors reassessed a planned pause in sweeping U.S. tariffs and focus shifted to a deepening trade war between Washington and Beijing.
U.S. West Texas Intermediate crude futures fell $2.28, or 3.7%, to settle at $60.07 per barrel. Brent crude futures fell $2.15, or 3.3%, to $63.33 a barrel.
Both contracts had gained more than $2 a barrel on Wednesday after U.S. President Donald Trump paused the heavy tariffs he had announced against dozens of U.S. trading partners a week ago, marking an abrupt U-turn less than 24 hours after the levies took effect.
At the same time, however, Trump also raised tariffs against China. U.S. tariffs on Chinese imports now total 145%, the White House told media on Thursday.
China announced an additional import levy on U.S. goods, imposing an 84% tariff.
Higher tariffs against China are likely to prompt lower U.S. crude imports by Beijing, backing up supply and raising U.S. storage levels, trading advisory firm Ritterbusch and Associates told clients on Thursday.
U.S. crude oil exports to China fell to 112,000 barrels per day (bpd) in March, nearly half of last year's 190,000 bpd, data from vessel tracker Kpler showed.
"If these trade disputes continue much longer, it's likely global economics will suffer significant economic damage," said Henry Hoffman, co-portfolio manager of the Catalyst Energy Infrastructure Fund.
U.S. crude stockpiles rose by 2.6 million barrels last week, government data showed on Wednesday, almost double the increase of 1.4 million barrels analysts projected in a Reuters poll.
Macquarie analysts said on Thursday that they expect another build this week.
The United States is also moving ahead with a 10% levy on all of its imports.
The U.S. Energy Information Administration on Thursday lowered its global economic growth forecasts and warned that tariffs could weigh heavily on oil prices, as it slashed its U.S. and global oil demand forecasts for this year and next. [EIA/M]
"The tariff-driven expectation of reduced demand amid the continued possibility of a U.S. recession will remain front and center of trader concerns in likely keeping a lid on near-term price gains," Ritterbusch and Associates said.
(Reporting by Shariq Khan and Arunima Kumar; Additional reporting by Ahmad Ghaddar and Jeslyn Lerh; Editing by Emelia Sithole-Matarise, Kirsten Donovan, David Evans and Mark Porter)
The article discusses the impact of Trump's tariff policies on oil prices and global trade relations.
Oil prices fell over 3% as investors reassessed the impact of the tariffs.
The trade disputes may lead to reduced global economic growth and lower oil demand.
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