President Donald Trump’s threat to impose tariffs on metal imports could create a perfect storm for oil prices to crash, according to one strategist.
At the start of the month, Trump announced plans to impose duties on steel and aluminum imports. The contentious move has prompted a global backlash and heightened fears of a tit-for-tat trade war.
Stephen Brennock, oil analyst at PVM Oil Associates, said such protectionist tariffs were a “major threat” to the demand side of the oil equation and would likely prompt a “vicious cycle” of downward pricing pressures. He added the move would be a “sure-fire” way to undermine economic trade and growth.