Crude oil prices were down on Monday as the U.S and China's reciprocal tariffs took effect on Sunday, Sept. 1.
The U.S. imposed tariffs of 15% on Chinese goods including footwear, smart watches and flat-panel televisions while Chinese tariffs of between 5% and 10% on a range of U.S. goods including crude oil also kicked in.
International benchmark Brent crude was trading at $59.40 per barrel at 0638 GMT on Monday, posting only a 0.03% increase after it closed Friday at $59.38 a barrel.
American benchmark West Texas Intermediate was at $55.01 a barrel at the same time, with a 0.03% loss, after ending the previous session at $55.03 per barrel.
Additional tariffs on another $250 billion worth of Chinese goods are expected to increase to 30%, from the previous rate of 25%, starting Oct. 1.
Raising tariffs weakens global oil demand estimates and pushes oil prices lower.
Adding fuel to fire, U.S. President Donald Trump tweeted on Sunday saying, 'Importers can find suppliers outside of China. Absolutely worth it, we don’t want to be servants to the Chinese! This is about American Freedom. Redirect the supply chain. There is no reason to buy everything from China!'
Despite retaliation from both countries, the two leaders are expected to meet later in the month.
By Zeynep Beyza Kilic