Commodities Hit on Threat to Demand

Crude & Copper Slip

- Alex Longley, Priscila Azevedo Rocha & Grant Smith April 3

OIL PLUNGED AND other commodities, from industrial metals to grains, slipped as President Donald Trump's tariff onslaught ratcheted up a trade war that threatens to hurt the global economy and demand for raw materials. Gold fell after hitting a fresh record high.

The levies were seen as more aggressive than expected, with a 10% duty on all exports to the US and even higher rates on about 60 nations. While a swath of commodities—including energy, steel, and aluminum—was exempted, there are mounting concerns about a broader hit to consumption, with major trading partners China and the European Union vowing countermeasures.

Brent crude futures slid the most since October, benchmark European gas touched a three-week low, and copper shed as much as 2.5%. Soybeans dropped the most since January on worries that American crops will suffer from retaliatory measures, and cotton plunged by the exchange limit.