On April 8, the price of Brent crude oil fell to approximately $61.5 per barrel, marking the lowest level in the last four years. Such low prices for “black gold” were last recorded in March 2021.
This is reported by Finway
The decline in oil prices is occurring against the backdrop of a stock market crash that has been ongoing since April 3, when U.S. President Donald Trump announced the imposition of tariffs on goods from most of Washington’s partner countries.
On the American markets, there was a partial recovery on April 7 and 8; however, by the end of the trading session on Tuesday, the decline resumed. One reason for this was the confirmation from the White House regarding the increase in tariffs on Chinese goods by 50% to a total level of 104%. As a result, the Dow Jones index fell by nearly 1%, the S&P 500 by 1.5%, and the Nasdaq by 2%.
China Responds to New Tariff Measures
In response to U.S. actions, China initiated a consultation procedure at the World Trade Organization (WTO) regarding the introduction of new import tariffs. Beijing is challenging the tariffs that came into effect in April: 10% for all countries and 34% for Chinese goods. The Chinese side believes that these actions violate U.S. commitments under the General Agreement on Tariffs and Trade of 1994, as well as agreements on customs valuation and subsidies.
Negotiations between the U.S. and China will take place in the form of bilateral consultations within the WTO framework. If no agreement is reached within 60 days, China has the right to demand the establishment of an arbitration panel.
Situation with the WTO Appellate Body
Since 2019, the WTO Appellate Body has been effectively paralyzed due to the blockage of new judge appointments by the U.S., complicating the enforcement of its decisions.
On April 2, U.S. President Donald Trump announced the imposition of trade tariffs on most of the United States’ trading partners.
In response, China’s Ministry of Finance announced the introduction of additional tariffs of 34% on all American goods, as well as restrictions on the export of certain rare earth metals. Trump warned that if China did not lift the tariffs by April 8, Washington would impose additional tariffs of 50%.