Commodity prices around the world are falling as news of U.S. President Donald Trump’s new tariff regime sparks fears of a global trade war that could hurt demand.
Prices for oil, industrial metals, and grains are all sliding lower as U.S. tariffs threaten to hurt the global economy and demand for raw materials. This has led to sharp declines in stocks of miners such as Teck Resources (TECK), agricultural giants such as Archer-Daniels-Midland (ADM), and oil producers like Chevron (CVX).
The lone exception to the tariff selloff continues to be gold, whose price hit yet another all-time high in the last 24 hours above $3,150 per ounce amid growing geopolitical instability. However, beyond gold, the news in commodities markets has been all bad after Trump announced a blanket 10% duty on all exports to the U.S., and even higher rates on 60 individual nations.
Across the Board Selloff
Brent crude oil, the international standard, fell as much as 7% on demand concerns. At the same time, the price of copper is down 3% and prices for soybeans have dropped on worries that American crops will suffer from retaliatory trade measures. Of particular concern in commodities markets is the impact on China, which is the world’s top importer of raw materials and agriculture products.
Government officials in Beijing immediately said they plan to respond aggressively to Trump’s imposition of an additional 34% tariff on all goods from China. Metal prices are being hit particularly hard by the latest tariffs. Aluminum already has a blanket 25% fee on all U.S. imports, and tariffs on copper are expected within weeks.
Is CVX Stock a Buy?
The stock of Chevron, one of the leading U.S. oil majors, has a consensus Strong Buy rating among 14 Wall Street analysts. That rating is based on 11 Buy and three Hold recommendations assigned in the past three months. The average CVX price target of $176.64 implies 11.33% upside from current levels.
