Global commodity markets faced a sharp sell-off on Thursday, with oil, copper, and agricultural products plunging after U.S. President Donald Trump announced aggressive tariffs on key trading partners, escalating fears of a global recession. Meanwhile, gold surged to an all-time high as investors flocked to safe-haven assets.
Trump imposed a minimum 10% tariff on most U.S. imports, with significantly higher duties on goods from dozens of countries, including China. This move is expected to trigger retaliatory measures, further disrupting trade flows and dampening demand for U.S. exports.
Oil and Copper Slide Amid Global Growth Concerns
The commodity market downturn was driven by fears of an economic slowdown, with oil and copper—both closely tied to global growth—suffering sharp losses.
Brent crude fell 2.6% to $73.03 per barrel, while
U.S. West Texas Intermediate (WTI) crude dropped 2.6% to $69.83.
“A slowdown in economic activity would naturally translate to weaker fuel demand,” said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova in Singapore.
Copper and aluminium also slid 1.5% on the London Metal Exchange, reflecting concerns over industrial demand.
China and EU Vow Retaliation, Stock Markets Plunge
China, now facing 54% tariffs on exports to the U.S., has pledged countermeasures, as has the European Union. Markets reacted negatively, with tech stocks bearing the brunt of the sell-off.
“Any retaliatory tariffs by impacted countries could weigh on global economic growth. The subsequent impact on industrial activity would see commodity markets come under pressure,” said Daniel Hynes, senior commodity strategist at ANZ Research.
Agricultural Markets Under Pressure
China, the world’s largest importer of agricultural goods, may further restrict purchases of U.S. farm products, worsening an already fragile sector.
Soybeans, corn, and wheat all declined by approximately 1.5%.
Palm oil fell after a four-day rally, while Japanese rubber futures hit a near three-week low.
Gold Surges to Record High
Spot gold soared to an all-time high of $3,167.57 per ounce, as investors sought shelter from market turmoil. The precious metal has now gained more than 19% year-to-date, driven by trade tensions, geopolitical risks, and central bank buying.
With uncertainty mounting over the future of global trade, markets remain volatile, with analysts warning of further disruptions in commodity prices.
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