Measurement and Testing

  • How Will Trump's Trade War Affect Oil?

How Will Trump's Trade War Affect Oil?

Jun 18 2018 Read 943 Times

From accusations of sexual misconduct to clandestine tax returns, Donald Trump has drummed up plenty of controversy during his presidency. Now, experts are warning that Trump's looming trade war could have serious consequences for the global oil market.

Several weeks ago, Trump not only ramped up trade penalties on China but also moved forward with tariffs on Mexico and the European Union. Canada, one of America's closest trade partners and allies was also on the hit list, with the Trump administration slamming a 25% levy on steel and a 10% tax on aluminium.

Canada set to strike back

Unsurprisingly, all three countries were quick to announce retaliatory action, with Canadian Prime Minister Justin Trudeau asserting, “It would be with regret but it would be with absolute certainty and firmness that we move forward with retaliatory measures on July 1st, applying equivalent tariffs to the ones that the Americans have unjustly applied to us.”

Trudeau didn't mince his words, assuring Trump that Canadians won't stand for economic bullying. “I have made it very clear to the president that it is not something we relish doing, but it is something that we absolutely will do, because Canadians: we’re polite, we’re reasonable, but we also will not be pushed around,” he says.

Shaking up the complex supply chain

With the trade war escalating, IEA analysts are concerned there could be a weighty fallout for the oil market. A slump in global trade could seriously affect demand, especially when it comes to fuel used in the ground transport and maritime sectors.

The American Petroleum Institute (API) agrees, with President and CEO Jack Gerard warning that the international tariffs will unsettle the complex supply chain that fuels the US oil and gas industry. He maintains this will compromise both ongoing and future energy projects and in turn, weaken national security.

With oil prices only just starting to stabilise in the wake of efforts from OPEC, the economic unrest couldn't come at a more inconvenient time. Of course, a drop in oil prices would be good news for Trump, with the President recently taking to Twitter to complain about oil prices.

"Oil prices are too high, OPEC is at it again. Not good!" he recently posted online.

With tariff stings on the way, companies across the globe will be looking at new ways to maximise efficiency. Introducing the latest solution from Chromatotec, 'Monitoring Airborne Molecular Contamination in Indoor Cleanroom Air' addresses a major concern felt by technology manufacturers, especially in the microelectronics industry.

Reader comments

Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.

Post a Comment




Digital Edition

Petro Industry News July 2019

July 2019

In this edition Fuel For Thought - Zeeland Refinery bridges gaps in planning and scheduling with dynamic optimisation software - TASI Group continues expansion with Sierra acquisition - Stu...

View all digital editions

Events

OIL & GAS AFRICA 2019

Jul 25 2019 Nairobi, Kenya

DXC 2019

Aug 05 2019 Lombard, IL, USA

ACS National Meeting & Expo, Fall 2019

Aug 25 2019 San Diego, CA, USA

Valve World Asia 2019

Aug 28 2019 Shanghai, China

World Heavy Oil Congress & Exhibition

Sep 02 2019 Muscat, Oman

View all events