Crude prices plunge nearly 3% after Trump’s sweeping new tariffs spark fears of a global slowdown and dampened oil demand.
Oil prices tumbled nearly 3% as U.S. President Donald Trump’s aggressive new tariff strategy stoked fears of a global trade war, raising concerns about weakened economic growth and reduced oil demand.
Trump’s Tariff Gambit Triggers Global Oil Shock
The oil markets just got hit with a dose of Trump shock therapy—again.
Crude prices plummeted nearly 3% Thursday after U.S. President Donald Trump announced sweeping reciprocal tariffs on dozens of America’s biggest trading partners. While oil itself is exempt from the tariffs, the implications are seismic: a looming trade war that threatens to strangle global growth and crush demand for crude.
Brent crude fell $1.97 to settle at $72.98, while WTI plunged $1.98 to $69.73, erasing the prior session’s gains in a sharp reversal tied directly to Trump’s press conference.
“Trade, economic growth, oil demand—it’s all connected,” said Bjarne Schieldrop, chief commodities analyst at SEB. “We’re looking at a storm coming. We just don’t know how bad it will get yet.”
Despite the exemption of oil, gas, and refined products from the tariff list, markets are clearly pricing in wider macroeconomic risk. Analysts warn that higher inflation, slower GDP, and retaliatory measures from China, the EU, and others could be a triple threat for crude consumption.
Making matters worse, U.S. crude stockpiles surged by 6.2 million barrels last week, according to the Energy Information Administration—a shocking jump compared to forecasts of a 2.1 million-barrel draw. That inventory build has reinforced bearish sentiment in a market already rattled by geopolitical tension, supply chain disruptions, and uncertainty over central bank moves.
With Trump’s “America First” trade crusade now officially aimed at the globe, markets are bracing for the fallout. Oil is the first to wobble—but it won’t be the last. If the tariffs cascade into a full-blown trade war, the world could be staring at a perfect storm: rising prices, slowing growth, and sinking energy demand.
The question now isn’t just how low oil can go—but how long the world can afford this kind of economic brinkmanship.
