Trump’s new tariffs send oil prices plunging into negative territory
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A new round of tariff talk has rattled global markets—and this time, oil is feeling the hit.
After a dramatic announcement from former President Donald Trump, oil prices took an unexpected dive, sparking new concerns for traders, analysts, and everyday consumers alike.
Though energy headlines can often feel distant, this sudden shift may impact everything from fuel costs to retirement investments. As the market recalibrates, it’s worth asking—what does it really mean for you?
Let’s break it down.
Trump revealed fresh tariffs targeting major trading partners, including the European Union, China, and South Korea.
While Canadian and Mexican oil will remain exempt under USMCA rules, the broader move has shaken confidence in global trade flows.
Many now fear a ripple effect that could reduce oil demand if global economic growth slows. As traders scrambled to react, oil futures initially climbed—then quickly fell into negative territory.
US crude futures had climbed by about $1 before plunging into red after Trump’s press conference.
Brent crude followed a similar path, highlighting how sensitive markets remain to geopolitical moves.
As Josh Young of Bison Interests put it, "Oil is selling off a little on the news, and it could introduce some additional trade and economic uncertainties, but I think people were worried it would be more extreme.”
At the same time, new data from the Energy Information Administration (EIA) showed a surprisingly large buildup in US crude inventories.
The jump—about 6.2 million barrels—added to concerns that supply is far outpacing demand.
According to UBS analyst Giovanni Staunovo, “The report was bearish in my view, with larger crude inventories and total petroleum inventories rising.”
Read more: The real cost of tariffs—why prices keep climbing
Markets are also watching closely for additional sanctions or tariffs on Russian oil.
Trump has floated secondary tariffs that could further squeeze the global supply chain.
Russia, which produces roughly 9 million barrels per day, is already facing limits after suspending some oil exports from its key Black Sea port. That includes shipments from neighboring Kazakhstan.
Adding a brief dose of calm, Mexico’s President, Claudia Sheinbaum, said they do not plan to impose retaliatory tariffs on the US—yet many remain wary about how long this truce will last.
For drivers, cheaper oil might lead to some relief at the pump in the short term. But that doesn’t mean smooth sailing ahead.
If you’re invested in energy stocks, or rely on oil sector stability for your income or pension, these developments could spell volatility.
Read more: New trade tariffs could spike grocery prices—here’s how to stay ahead
A shift in oil demand—or supply chain disruption—can shake markets and ripple through retirement portfolios.
Analysts warn that tariffs may stoke inflation and slow growth—factors that tend to weigh on oil prices long-term. “Crude prices have paused last month’s rally,” said Saxo Bank’s Ole Hansen, citing Trump’s tariff move as a possible brake on momentum.
Investors are now waiting to see if further tariffs—including those aimed at Russia or Iran—become reality. Until then, uncertainty may dominate.
Energy markets are always in motion, but today’s turbulence shows just how fast politics and policy can change the landscape.
Have you noticed fuel prices shifting in your area? Are you concerned about how energy trends might impact your investments or retirement savings? We invite you to join the conversation below and share your thoughts. At The GrayVine, we believe in breaking down the big issues in ways that matter to you—because global events often hit close to home.
Read next: Trump drops key update: Here’s the "pain" Americans could face from tariffs
After a dramatic announcement from former President Donald Trump, oil prices took an unexpected dive, sparking new concerns for traders, analysts, and everyday consumers alike.
Though energy headlines can often feel distant, this sudden shift may impact everything from fuel costs to retirement investments. As the market recalibrates, it’s worth asking—what does it really mean for you?
Let’s break it down.
Trump revealed fresh tariffs targeting major trading partners, including the European Union, China, and South Korea.
While Canadian and Mexican oil will remain exempt under USMCA rules, the broader move has shaken confidence in global trade flows.
Many now fear a ripple effect that could reduce oil demand if global economic growth slows. As traders scrambled to react, oil futures initially climbed—then quickly fell into negative territory.
US President Trump's new tariffs raise concerns about their implementation and potential impacts on trade. Image source: WION / YouTube
US crude futures had climbed by about $1 before plunging into red after Trump’s press conference.
Brent crude followed a similar path, highlighting how sensitive markets remain to geopolitical moves.
As Josh Young of Bison Interests put it, "Oil is selling off a little on the news, and it could introduce some additional trade and economic uncertainties, but I think people were worried it would be more extreme.”
At the same time, new data from the Energy Information Administration (EIA) showed a surprisingly large buildup in US crude inventories.
The jump—about 6.2 million barrels—added to concerns that supply is far outpacing demand.
According to UBS analyst Giovanni Staunovo, “The report was bearish in my view, with larger crude inventories and total petroleum inventories rising.”
Read more: The real cost of tariffs—why prices keep climbing
Markets are also watching closely for additional sanctions or tariffs on Russian oil.
Trump has floated secondary tariffs that could further squeeze the global supply chain.
Russia, which produces roughly 9 million barrels per day, is already facing limits after suspending some oil exports from its key Black Sea port. That includes shipments from neighboring Kazakhstan.
Adding a brief dose of calm, Mexico’s President, Claudia Sheinbaum, said they do not plan to impose retaliatory tariffs on the US—yet many remain wary about how long this truce will last.
For drivers, cheaper oil might lead to some relief at the pump in the short term. But that doesn’t mean smooth sailing ahead.
If you’re invested in energy stocks, or rely on oil sector stability for your income or pension, these developments could spell volatility.
Read more: New trade tariffs could spike grocery prices—here’s how to stay ahead
A shift in oil demand—or supply chain disruption—can shake markets and ripple through retirement portfolios.
Analysts warn that tariffs may stoke inflation and slow growth—factors that tend to weigh on oil prices long-term. “Crude prices have paused last month’s rally,” said Saxo Bank’s Ole Hansen, citing Trump’s tariff move as a possible brake on momentum.
Investors are now waiting to see if further tariffs—including those aimed at Russia or Iran—become reality. Until then, uncertainty may dominate.
Energy markets are always in motion, but today’s turbulence shows just how fast politics and policy can change the landscape.
Read next: Trump drops key update: Here’s the "pain" Americans could face from tariffs
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