OLOXF - The Tariff Pause
2025-04-10 01:10:00 ET
Summary
- President Trump surprised markets with a 90-day pause in reciprocal tariffs for most trading partners.
- This provided a boost to risk assets, including commodities.
- However, there’s still plenty of uncertainty as the US again increased tariffs on China.
By Warren Patterson | Ewa Manthey
Energy – Tariff pause provides some relief
Oil prices rallied along with risk assets yesterday after President Trump paused reciprocal tariffs on most trading partners, at least those that haven’t retaliated yet. This puts tariffs back to the baseline 10%. However, there was no relief for China. The US increased tariffs to 125% after China raised retaliatory tariffs on US goods to 84%. While the pause offers some relief to markets, there’s still plenty of uncertainty on the trade front. This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand. Still, conditions are not looking as bad as they were just a few days ago....
The Tariff Pause