Trump's Comprehensive Tariffs Exclude Energy Goods

On April 3rd, a Reuters columnist pointed out that in the comprehensive new import tariffs announced by Trump, what almost no one took notice of was that energy commodities were excluded. The White House stated on Wednesday that a 10% baseline tariff on all U.S. imports (higher tariffs apply to many key trading partners) would not be imposed on crude oil, natural gas, and refined oil products. The intention behind exempting energy imports from tariffs is obvious. It aims to limit the extent of price pain that Americans would experience due to the tariffs. It is also in line with Trump's broader goal of maintaining low energy prices. However, this move has further intensified the dilemma that other countries are facing in dealing with Trump's disruption of the global trade system. When responding to U.S. tariffs, one of the best negotiation chips for many countries is the energy they purchase from the U.S. or could potentially purchase from the U.S. (FX168)