Russia sounds alarm as oil prices plummet after Trump tariffs and China’s retaliation

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Russia on Monday said it was monitoring the plummeting oil prices, which play a pivotal role in running the country's economy, after US President Donald Trump's tariffs and China's retaliatory announcement sent global markets into panic.

"Of course this indicator is very important for filling the budget," Kremlin spokesman Dmitry Peskov said, asked about falling oil prices. "Our authorities are very closely watching in order to minimise the consequences of the economic storm."

Stock markets and oil prices collapsed further for markets as Trump stood firm over his tariffs despite recession fears. Trading floors across Asia and Europe were overcome by waves of further selling after last week's sharp losses.

Meanwhile, Trump took to Truth Social platform and called China "the biggest abuser of them all" on tariffs after Beijing retaliated last week against his levies in an escalating trade war.

He singled out China, which has targeted the United States with a 34 percent tariff in response to Washington's levying of the same amount, saying in a post on his Truth Social network it had not acknowledged "my warning for abusing countries not to retaliate."

"Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place. This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past “leaders” are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!" he wrote.

Concerns about future energy demand saw oil prices sink about three percent, having dropped some seven percent Friday. Both main contracts are now sitting at their lowest levels since 2021.