ByIrina Slav– Feb 10, 2025, 3:36 AM CST
Crude oil prices began trade this week with a gain as traders digested the news of President Donald Trump announcing tariffs on all steel and aluminum imports into the United States.
Trump broke the news about the new tariffs on board Air Force One on Sunday evening, pushing Brent crude up to $75.22 per barrel at the time of writing, with West Texas Intermediate trading at $71.52 per barrel.
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Trump said Sunday he was going to introduce a blanket tariff of 25% on all steel and aluminum coming into the United States, adding he would later in the week be announcing retaliatory tariffs on countries that already have import duties in place for U.S. goods.
“And very simply, it’s, if they charge us, we charge them,” Trump summarized his approach to trade policies, which will once again ignite frustration among U.S. neighbors and top trading partners.
Canada is by far the biggest supplier of steel and aluminum to the United States and reactions from local politicians were swift. “Canadian steel and aluminum support key industries in the U.S. from defense, shipbuilding and auto,” Canada’s innovations minister Francois-Philippe Champagne wrote on X, as quoted by Reuters. The premiers of Ontario and Quebec also slammed Trump’s decision—the two provinces are, respectively, the biggest U.S. supplier of aluminum and of steel.
“The market has realised tariff headlines are likely to continue in the weeks and months ahead,” IG analyst Tony Sycamore told Reuters, commenting on oil price trends. “So perhaps investors are coming to the conclusion it’s not the best course of action to react to every headline negatively,” he suggested.
“The market has been largely focused on the weaker demand story due to intensifying trade tensions,” ANZ analyst Soni Kumari told Bloomberg. “Trump’s policies will remain supportive for oil,” she predicted, citing the possibility of broader sanctions against Iran and Russia.
By Irina Slav for Oilprice.com
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