# Oil dives 7% to lowest in over 3 years on China's tariffs

> Oil prices plunged about 7% to settle at their lowest in over three years after China announced additional 34% tariffs on all U.S. goods from April 10. Brent settled at $65.58 and WTI at $61.99, with both posting their biggest weekly losses in roughly a year or more.

- Date: 2025-04-04 · published 2025-04-04T12:00:00.000Z
- Category: trade · region Global · magnitude high
- Page: https://feedsoft.ai/events/6315-oil-dives-7-to-lowest-in-over-3-years-on-china-s-tariffs
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Escalating tariffs raise recession odds and cut expected energy demand from the world's top oil importer, pushing crude and energy-linked prices lower. Weaker crude also lowers biofuel and feedstock economics, pressuring soybean oil and palm oil.

## Read by commodity

- SBO: bearish ▼
- WTI: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2025-04-07 | 5 | -15.6% | -5.6 | China's retaliatory 34% tariffs on April 4 escalated the trade war and drove a roughly 7% Brent drop to $65.58, raising the demand-destruction outlook. |
| BRENT | 2025-04-08 | 5 | -16.6% | -5.2 | China's 34% retaliatory tariffs on Apr 4 escalated the trade war, raised demand-destruction fears and drove a ~7% drop to multi-year lows. |
| WTI | 2025-04-07 | 5 | -15.5% | -4.6 | China's 34% retaliatory tariffs escalated the trade war and drove a ~7% settlement drop in WTI to lows in over three years. |
| PALMOIL | 2025-04-09 | 5 | -7.8% | -2.8 | A 7% crude oil plunge to 3-year lows on US-China tariff escalation weakens palm oil via reduced biodiesel/discretionary blending economics and the palm-gasoil spread, plus broad risk-off sentiment and fears of lower global demand, all coinciding with the start of the 5-day decline. |
| PALMOIL | 2025-04-07 | 1 | -3.6% | -3.6 | Crude's ~7% plunge to a 3-year low on April 4 reduced palm's biodiesel discretionary-blending appeal and set up the Monday selloff. |
| PALMOIL | 2025-04-06 | 1 | -3.6% | -3.8 | Crude oil plunged about 7% on China's retaliatory tariffs, which cuts palm oil's biodiesel/energy-linked demand and pressured vegetable oils. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2025-04-09 | [Oil falls to lowest since 2021 as Trump's tariffs take effect](https://feedsoft.ai/events/6322-oil-falls-to-lowest-since-2021-as-trump-s-tariffs-take-effect.md) | +2.9% | -1.5% |
| WTI | 2019-08-01 | [Oil plunges, down more than 6% after Trump adds tariffs on China](https://feedsoft.ai/events/8495-oil-plunges-down-more-than-6-after-trump-adds-tariffs-on-china.md) | -12.7% | -4.7% |
| WTI | 2018-04-06 | [US oil closes 2.3% lower after Trump's latest China trade threats](https://feedsoft.ai/events/10843-us-oil-closes-2-3-lower-after-trump-s-latest-china-trade-threats.md) | +5.6% | +7.7% |
| WTI | 2019-08-23 | [China strikes back at U.S. with new tariffs on $75 billion in goods \| Reuters](https://feedsoft.ai/events/57443-china-strikes-back-at-u-s-with-new-tariffs-on-75-billion-in-goods-reuters.md) | +2.4% | +5.1% |
| WTI | 2019-08-07 | [Oil dives 4.7% on fears of a global slowdown](https://feedsoft.ai/events/12577-oil-dives-4-7-on-fears-of-a-global-slowdown.md) | +6.4% | +0.6% |
| BRENT | 2025-04-09 | [Oil falls to lowest since 2021 as Trump's tariffs take effect](https://feedsoft.ai/events/6322-oil-falls-to-lowest-since-2021-as-trump-s-tariffs-take-effect.md) | +2.8% | -4.9% |
| BRENT | 2019-08-01 | [Oil plunges, down more than 6% after Trump adds tariffs on China](https://feedsoft.ai/events/8495-oil-plunges-down-more-than-6-after-trump-adds-tariffs-on-china.md) | -13.9% | -6.4% |
| BRENT | 2018-04-06 | [US oil closes 2.3% lower after Trump's latest China trade threats](https://feedsoft.ai/events/10843-us-oil-closes-2-3-lower-after-trump-s-latest-china-trade-threats.md) | +6.4% | +9.1% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/oil-set-worst-week-months-over-trumps-new-tariffs-2025-04-04/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.