Japan: Oil prices fell down today after US President Donald Trump threaten to levy new trade tariffs on China.
Oil prices have seen a sharp decline after Donald Trump announced to impose new trade tariffs on China. Brent dropped by over $1 at one point, after the announcement of new taxes.
Brent crude futures were down 0.8% or $0.65, at $78.21 a barrel by 1127 PST, having fallen to the minimum value of $77.60. US crude was down 0.6% or $0.43, at $73.68.
The imposition of tariffs on $200 billion Chinese goods made commodities down along with the stock markets. The US-China trade war is not just affecting both countries but also creating an adverse impact on world’s economy.
A few months back, the US administration officials suggested 25% tariffs on 1300 Chinese products. Technology, industrial, and transportation products were included in the list. In retaliation, China gave a strong reply by imposing tariffs on the US products such as planes, beef, soybeans, chemicals, cars, etc. In 2017, China did around $370 billion trade surplus with the USA. Trump demanded that China should cut this amount by $100 billion. However, Chinese officials denied the US claims and cleared that they have no intention to cause damage to US intellectual property.