President Trump’s announcement of reciprocal import tariffs caused a drop in oil prices on Thursday, while gold reached a new record high. Notably, Canada, Mexico, and energy products were exempted from the tariffs.
This is a summary of the immediate effects following Wednesday’s announcement.The White House confirmed that steel, aluminum, gold, and copper imports will be exempt from reciprocal tariffs, offering some relief to domestic buyers. Gold prices surged by 1.1% to a record high as investors sought safety, while copper futures declined due to global economic concerns.
Crude oil prices dropped over 2%, falling below $70 a barrel, driven by fears of reduced demand and a potential trade war.Crude oil prices fell over 2%, dropping below $70 a barrel due to concerns over declining demand and a potential trade war. However, energy products are exempt from the new tariffs, so oil and natural gas markets won’t be directly affected. Canada and Mexico, the top foreign oil suppliers to the U.S., were also excluded from the new tariffs, though exports not compliant with the USMCA will remain subject to a 25% levy.
If that tariff is removed, the new reciprocal tariff will apply.US farmers benefit from a USMCA exemption, avoiding tariffs on key imports like potash fertilizer, dairy, canola, and sugar. Non-USMCA compliant energy and potash face a 10% tariff. Mexico remains the top sugar supplier to the US, while Canadian canola farmers depend on US and Chinese markets.Despite the USMCA exemption, Trump criticized Canada’s dairy tariffs.
Vietnam, the top robusta coffee producer, faces a 46% tariff, while Brazil and Colombia face 10%. Ivory Coast, the leading cocoa grower, is subject to 21% tariffs.Vietnam, Thailand, Cambodia, and Malaysia, which supply 80% of U.S. solar panel imports, face new tariffs on top of existing levies and potential future duties.
While U.S. clean tech manufacturing has grown, driven by Biden’s Inflation Reduction Act and prior tariffs, the country remains reliant on Asian supply chains. These new tariffs could slow clean energy expansion despite the administration’s push for fossil fuels.
