Oil prices fell on Monday as President Donald Trump has threatened China to slap a 25-per cent tariff on hundreds of billions worth of Chinese goods that have as yet “remained untaxed” adding that the US will increase the current 10-per cent tariff on $200bn worth of goods to 225 per cent, he said in a series of tweets, sparking worry that ongoing trade negotiations may not have the positive outcome markets hoped for until recently.
Oil prices reacted with a drop, oilprice.com reported.
“For 10 months, China has been paying Tariffs to the USA of 25 per cent on $50bn of High Tech, and 10 per cent on $200bn of other goods. These payments are partially responsible for our great economic results. The 10 per cent will go up to 25 per cent on Friday,” Trump tweeted on Sunday.
“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” the President of the United States added.
Another round of tariffs will in all likelihood prompt a retaliatory move, which, as before, many worry will affect US oil and LNG exports to China. Currently, China taxes US LNG imports at a 10-percent rate but does not tax crude oil imports.