US president Donald Trump has exempted many energy and mineral products from his new import tariffs, potentially reducing the immediate impact on commodity trade. But the threat of global economic disruption nevertheless sent commodity futures sharply lower today.
The tariffs, announced by Trump on 2 April, include carve-outs for "copper… semiconductors… certain critical minerals, and energy and energy products," the White House said.
The full list of exempted products includes many non-ferrous metals, oil products, base oils, coal and some fertilizer and chemical products.
The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, which already are subject to separate tariffs. A 25pc tariff on all imported cars and trucks came into force on 3 April, while a 25pc tax on auto parts will take effect on 3 May.
Oil futures fell by over 3pc early in Asian trading hours, despite the exemptions, on concerns about the impact of the new tariffs on the global economy. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. Both contracts remained close to their daily lows at 3:15pm Singapore time (07:15 GMT).
Exchange-traded metals prices also fell. The declines came despite a drop in the value of the dollar, which would typically support prices of commodities by making them cheaper for buyers using other currencies.
