Retaliatory tariffs could spark inflationary trade shift and cut oil demand
- US tariffs and retaliatory measures will likely see commodity trades move and an inflationary consequence
- Tariffs will have negative economic repercussions, reducing underlying oil demand growth
- Given the potential loss of demand for US exports, lower underlying oil prices and wider inflationary effects within the US economy, a negative impact on US oil production is possible
Retaliatory tariffs against the US will affect cargo volumes more than the US tariffs themselves, but the inflationary effect of commodities being sourced elsewhere is yet to be determined
