International News 06 March 2025
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China attacks US agriculture industry in response to Trump's new tariffs
In response to the new tariffs imposed by the US, China has taken retaliatory measures, including the imposition of import levies on American agricultural and food products with an estimated value of $21 billion. Furthermore, China has implemented export and investment restrictions on 25 US companies for national security reasons, though it appears to have avoided targeting prominent entities in a manner similar to its response to the tariffs previously imposed by the Trump administration. A spokesperson from the Chinese Foreign Ministry has stated that attempts to pressure China are a miscalculation and a mistake, and that China does not give in to intimidation or coercion.The US tariffs, which amount to an additional 10% import duty on Chinese goods, were implemented on 4 March.This latest move by China brings the two largest economies in the world closer to an all-out trade war.
Oil prices plummet, Brent hits 6-month low on OPEC+ production hike
On Tuesday, oil prices fell sharply due to a number of factors.The decision by OPEC+ to increase oil production by 138,000 barrels per day by April 2025, the first increase since 2022, took the market by surprise and exerted pressure on prices.This was further compounded by news of US tariffs on Canada, Mexico, and China, along with Beijing's retaliatory tariffs, which further exacerbated market concerns. Brent crude oil prices closed at $71.04 per barrel, reaching the lowest level since September, while US West Texas Intermediate (WTI) crude oil prices fell to $68.26 per barrel, the lowest point since November.This decline reflects a shift in OPEC's strategy, potentially prioritising political considerations over price as they respond to calls for lower oil prices from the US President. The introduction of US tariffs on Canadian and Mexican imports, with a particular focus on Canadian energy, has also had a significant impact on the market.