Global Commodities Plunge Amidst Escalating Trade Tensions

Oil and key commodities like copper and soybeans witnessed sharp declines as President Trump's new tariffs stoked fears of a global economic downturn. Investors anticipate countermeasures from affected countries, particularly China. The tariffs have intensified concerns about a potential recession and its negative impact on global commodity markets.

In a dramatic turn of events on Thursday, oil prices recorded their steepest fall in three years, accompanied by notable declines in commodities like copper and soybeans. The sharp drop followed U.S. President Donald Trump's imposition of new tariffs, raising fears of an impending global recession.

Despite initially reaching an all-time high, gold eventually fell in the broader market selloff. The announcement of a 10% tariff on U.S. imports, with higher charges on products from many countries including China, prompted an investor exodus due to expected retaliatory measures, which could inflate prices and dampen demand for American goods.

China, already facing considerable tariffs, hinted at countermeasures, while experts warn that any such actions could exacerbate the slowdown in global economic growth, putting further pressure on the commodity markets.

(With inputs from agencies.)