Oil prices slid amid trade tensions, dropping more than 3% on Monday
The global economy experienced significant turbulence over the weekend following President Donald Trump’s protectionist trade policies.
A baseline 10% tariff on imports from nearly every country went into effect at 12:01 a.m. Saturday ET. Dozens of nations will face even higher rates next week: 20% for the European Union, 46% for Vietnam, 24% for Japan and 25% for South Korea.
In response, affected countries reacted swiftly. China imposed a 34% tariff on all US goods, effective April 10 and banned 11 American companies. The European Union (EU), Canada and others announced countermeasures.
The tariffs have rattled global markets.
Oil prices slid amid trade tensions, dropping more than 3% on Monday, extending last week’s steep losses as US-China trade tensions sparked fears of a global recession.
In two days, oil plunged about 14% to a four-year low amid rising trade war fears. The decision by OPEC+ to increase output is another reason behind the freefall.
Analysts warn oil prices may keep falling amid fears that rising tariffs will raise business costs and dampen demand.
JPMorgan increased its recession forecast to 60%, up from 40%, citing the potential economic impact of the tariffs.
Jaguar Land Rover paused US car shipments for April to address Trump’s new 25% import tariff. The US market accounts for nearly 25% of its sales.
Meanwhile, Treasury Secretary Scott Bessent defended new tariffs, rejecting recession fears.
President Trump warned foreign governments on Sunday they must pay “a lot of money” to lift tariffs, which he called economic “medicine.” He argues that tariffs will boost US manufacturing, cut drug and migrant flows, and raise government revenue.