Oil prices are down on Monday as the first day of additional tariffs imposed by China and the U.S. against each other take effect.
Brent crudes decreased by 0.4% selling at $59.03/barrel on Monday while the U.S. oil fell 0.5% at $55.03/ barrel.
Footwear, televisions, and smartwatches were some of the items included in the 15% tariffs imposition of the U.S. on Chinese goods that have started on Sunday, Sept.1.
Despite the tariffs exchanges, the two powers will still meet later this month for trade talks. Trump’s latest statement regarding the recent development implied a reduction of dependence on China and on encouraging American companies anew to look for other suppliers besides China.
For China, its new 5% tariffs on U.S. crude is its response to the Trump tariffs.
An investment analyst said that the latest escalation of the trade war would not result in a trade deal despite the White House’s dismissal of growing concerns of trade war extension for an indefinite period.