Oil falls 1.5% with fear of Trump rates to Canada, Mexico and China

US President Donald Trump’s protectionist policies have stirred markets around the world, with Trump imposing and then postponing tariffs on the largest oil suppliers in the country, Canada and Mexico, and also increasing tariffs on Chinese products. China and Canada responded with their own rates.

“This market is in suspense and there is a lot to be processed as we advance,” said John Kilduff, a partner of Again Capital in New York. “There is rumors of recession to the US and this is very worrying for the macroeconomic picture.”

Over the weekend, US Secretary of Commerce, Howard Lutnick, said Trump would not reduce pressure on Mexico, Canada and China tariffs.

Investors are now concerned about a possible economic slowdown that could reduce demand for oil. The shares, which are often accompanied by oil prices, continued to fall accentuated amid concerns with tariffs, with the S&P 500 reference index falling 2% in the middle of the day and Nasdaq composite falling more than 3%.

On Friday (7), Russian vice-master-minister Alexander Novak said the OPEC+ group agreed to start increasing oil production from April, but could later reverse the decision if there are imbalances in the market.

Also with regard to supply, Trump is trying to stifle Iran’s oil exports as part of the efforts to press Tehran to control the nuclear program. Iran’s supreme leader Ayatollah Ali Khamenei said on Saturday that the country will not be intimidated to negotiate.