Trump Announces Sweeping Global Tariffs, Markets React

President Trump has unveiled a major trade policy shift, instituting reciprocal tariffs on countries worldwide, ranging from 10% to 50%. The move targets trade barriers imposed on American exports, with China facing a 34% tariff and the EU at 20%. Some Asian and African nations, including Cambodia and Lesotho, will be hit with tariffs exceeding 40%. Trump framed the policy as a push for “economic independence,” promising domestic job growth and tax cuts. However, critics warn of rising consumer prices and economic strain. Stock markets responded with volatility, with shipping and cruise stocks declining in after-hours trading. Mexico and Canada remain exempt from the new tariffs.

___________________________________

Oil Imports Exempted from Trump's Broad Tariff Plan

U.S. President Donald Trump’s newly announced sweeping tariffs will not apply to oil, gas, or refined product imports, a White House official confirmed. The exemption alleviates industry concerns over potential disruptions to energy supply chains, particularly for Canadian crude oil used in Midwest refineries and European refined fuel imports critical to the U.S. East Coast. The 10% baseline tariff and higher duties on major trading partners aim to escalate Trump’s ongoing trade war but leave energy imports untouched, including those from Canada and Mexico, which are already shielded under the USMCA trade agreement.

___________________________________

Oil Prices Turn Negative as Trump’s Tariffs Spark Global Trade Concerns

Oil prices initially rose but later turned negative after U.S. President Donald Trump announced new tariffs on major trading partners, raising fears of a global trade war. Brent crude settled at $74.95 per barrel (+0.6%), and WTI at $71.71 (+0.7%) before falling in post-settlement trade. Trump’s tariff list targeted the EU, China, and South Korea but excluded Canada and Mexico, ensuring USMCA-compliant oil remains unaffected. Canada supplies around 4 million barrels of crude per day to the U.S., highlighting its significance in North American oil trade. Analysts warn that tariffs could slow economic growth, increase inflation, and limit oil price gains, with Brent struggling to break above $75. Mexico’s President Claudia Sheinbaum eased concerns by confirming no retaliatory tariffs against the U.S., calming markets slightly. Additional uncertainties arise as Russia imposes export restrictions at its Black Sea port, affecting global supply, while the U.S. toughens sanctions on Iran. Despite a larger-than-expected U.S. crude inventory build of 6.2 million barrels, investors largely dismissed the bearish data, attributing it to increased Canadian imports.

___________________________________

Russia Tightens Black Sea Oil Export Restrictions Amid Rising Tensions

Russia, the world’s second-largest oil exporter, imposed new restrictions on Black Sea oil shipments by suspending a mooring at Novorossiisk just a day after limiting loadings from the Caspian Pipeline. Producing about 9 million barrels daily, Russia also exports oil from Kazakhstan. The move comes as U.S. President Donald Trump expresses dissatisfaction with Russia’s role in Ukraine peace talks and threatens secondary tariffs on Russian oil buyers. Transneft, Russia’s pipeline monopoly, announced a 90-day suspension of Berth 8 at the Sheskharis terminal due to regulatory violations, affecting low-sulfur diesel exports to Turkey and Georgia. Industry data shows this berth handled around 100,000 tons of diesel from January to March. Separately, two of three moorings at the Caspian Pipeline Consortium (CPC) were closed after inspections, though CPC buyers await a revised loading schedule. Meanwhile, Ukraine accused Russia of escalating attacks on its energy infrastructure, with strikes on substations and power lines affecting thousands. Despite restrictions, Kazakhstan and Chevron confirmed uninterrupted oil flows through the CPC pipeline, which is set to export 1.7 million barrels per day in April.

___________________________________

OPEC+ Pressures Kazakhstan to Curb Excess Oil Production at Key Meeting

OPEC+ will focus on Kazakhstan’s overproduction issue in Thursday’s meeting, as the country continues to exceed its output quota despite pressure from top producers like Saudi Arabia. The meeting aims to ensure Kazakhstan’s new energy minister, Erlan Akkenzhenov, understands the need to comply with production limits and compensate for past excesses. In May, eight OPEC+ members, including Russia and Saudi Arabia, plan to raise output by 135,000 barrels per day as part of a gradual rollback of a 2.2 million bpd production cut. Additional cuts of 3.65 million bpd remain in place until the end of 2025. The meeting follows Russia’s recent closure of two of three Black Sea moorings handling Kazakhstan’s oil exports, a move expected to reduce the country’s production. The OPEC+ ministerial committee, initially set for April 5, may also convene on Thursday to discuss potential policy changes.

___________________________________

U.S. Treasury Targets Iranian Oil Revenues in Sanctions Crackdown

U.S. Treasury Secretary Scott Bessent met with 16 global banks and federal law enforcement agencies to discuss strengthening sanctions on Iran, particularly efforts to cut its oil exports. The Trump administration aims to disrupt Iran’s financial resources, citing its alleged support for militant groups and nuclear ambitions. In March, the U.S. sanctioned tankers carrying Iranian oil and a Chinese "teapot" refinery, Shandong Shouguang Luqing Petrochemical Co., Ltd, for processing Iranian crude. China’s national oil companies have ceased purchasing Iranian oil due to sanction concerns. Bessent warned that Iran operates a covert shadow banking network to conduct foreign exchange transactions and urged global banks to safeguard against exploitation. The Treasury Department is using financial and regulatory tools to block Iran’s revenue streams, while Trump has threatened secondary tariffs on buyers of Iranian and Russian oil. The department did not disclose which banks attended the meeting.

___________________________________

Trans Mountain Pipeline Faces Slow Growth Amid High Costs and Competition

Canada’s Trans Mountain pipeline has revised its oil shipment forecasts downward, citing slower-than-expected utilization of its expanded capacity. The government-owned pipeline, which started service in May 2024 with an expected 96% utilization rate by 2025, now projects 84% in 2025, 88% in 2026, and 92% in 2027, only reaching 96% by 2028. Analysts attribute the slowdown to high tolls, nearly double 2017 estimates, making it less competitive than the Enbridge Mainline, which offers lower rates and 100% spot capacity. In 2024, spot shipments fell short at 18,500 bpd versus the expected 30,600 bpd, leading to 77% overall utilization. The pipeline's construction costs soared to C$34 billion, five times the initial estimate, with C$9 billion in uncapped costs directly impacting shipping rates. Some major shippers, including Canadian Natural Resources and Cenovus Energy, are challenging these higher tolls in a regulatory hearing. The Canadian government hopes to sell the pipeline, but lower-than-expected revenue projections—$2.7 billion for 2025, down from $3.0 billion—raise concerns. However, analysts suggest Trans Mountain could see a rapid demand surge if U.S. President Donald Trump imposes tariffs on Canadian oil imports.

___________________________________

China Ship Sales Plummet as US Port Fee Uncertainty Looms

Shipowners have dramatically reduced purchases of Chinese-built dry bulk carriers amid concerns over potential US port fees that could reach $3.5 million per vessel. Only four second-hand Chinese bulkers were sold in March, the lowest since at least 2022 and just 20% of last year’s monthly average. In contrast, demand for Japanese-built ships remains steady. Market data shows Chinese-built vessels selling at steeper discounts—recently $5.8 million below comparable Japanese ships—while new orders for Chinese-built bulk carriers have slowed. The proposed US tariffs are already reshaping trade, with some buyers avoiding Chinese ships, while others, focused on non-US routes, see an opportunity to buy at lower prices.

___________________________________

Hyundai Shipbuilding Secures Sonangol Suezmax Tanker Order as Prices Decline

South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has confirmed a deal with Angola’s Sonangol Shipping for two 158,000-DWT suezmax crude tankers, valued at $88 million each, for delivery by May 2027. The contract, worth $176 million in total, reflects a cooling market, with new suezmax prices dipping from $90 million last year to $87.5 million. Sonangol’s order is part of its fleet renewal, replacing aging vessels. Despite economic uncertainty slowing new ship orders, HD KSOE has secured contracts for 23 ships worth $3.81 billion, reaching 21.1% of its 2024 order target of $18.05 billion.

___________________________________

Hanwha Ocean Secures $257M VLCC Order from Oceania Buyer

South Korea’s Hanwha Ocean has secured a contract for two 320,000-DWT VLCCs worth $257 million ($128.5 million each) from an undisclosed buyer in Oceania, with delivery expected in May 2027. Market sources identify Greek shipowner Evangelos Marinakis’ Capital Group as the likely client. This deal marks Hanwha’s third newbuilding contract in 2025, following orders for LNG carriers and large container ships. Hanwha also recently secured a $1.59 billion contract with Evergreen Marine for six 24,000-TEU LNG dual-fuel boxships.