Oil prices tumbled nearly 8% on Friday, hitting their lowest levels since 2021, while copper, soybeans, and other commodities also slumped as China retaliated against U.S. tariff policies. The escalating trade tensions stoked fears of a global economic slowdown, dragging down markets across the board.
Brent crude plunged 6.46% to 65.63 per barrel, while U.S. (WTI) crude marking the lowest close since April 2021—the height of the COVID-19 pandemic. The sell-off came after China imposed a 34% tariff on all U.S. goods, retaliating against President Trump’s 10% minimum tariff on most imports.
“China is not backing down—they’re escalating,” said Bjarne Schieldrop, chief commodities analyst at SEB. He warned of further retaliation, with Trump vowing not to change course, stating China had “played it wrong.”
Commodities in Freefall
Soybeans dropped over 3% as China, the world’s largest buyer, shifted purchases to Brazil.
Copper slid 3%, its worst daily decline since 2020, while aluminum hit a September low.
Gold fell 3% as traders liquidated positions amid broader market turmoil.
Wall Street also reeled, with the Dow Jones nearing a correction and the Nasdaq sliding toward bear market territory. Analysts warned that prolonged trade tensions could weaken global demand, further pressuring commodity markets.