Economy News – Baghdad
Oil prices have stabilized today, Tuesday, as consumers adapt to a new round of commercial customs duties. The latest imposition includes a 25 percent tariff on all imports of steel and aluminum from the United States, raising concerns about the potential negative impact on global economic demand and energy consumption in the world’s largest oil consumer.
As of 01:28 GMT, Brent crude futures increased by 11 cents, or 0.14 percent, reaching $75.98 per barrel, while US West Texas Intermediate crude saw a modest rise of five cents, or 0.07 percent, settling at $72.37.
In a significant policy move, US President Donald Trump has decided to impose a 25 percent tariff on steel and aluminum imports without exceptions or exemptions. This approach is intended to support struggling industries, although it raises the risk of a broader trade conflict.
Investors had anticipated that Trump’s presidency would bolster the energy sector, yet the new tariffs will likely affect substantial quantities of steel and aluminum imported from Canada, Brazil, Mexico, South Korea, and other nations.
The tariffs may stifle global economic growth and energy demand, thereby putting downward pressure on oil prices.
Last week, Trump delayed the implementation of a 25 percent tariff on imports from Mexico and Canada, as well as a 10 percent tariff on Canadian crude oil, until March 1, pending ongoing negotiations with these countries.
In addition, President Trump has also imposed a 10 percent tariff on imports from China, which has retaliated with tariffs on certain American products, including a 10 percent fee on crude oil.
Amid these developments, the Federal Reserve is grappling with the risk of soaring inflation rates. Maintaining elevated interest rates could hinder economic growth, which in turn may adversely affect oil demand.
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