United States President, Donald Trump on Thursday crashed the prices of oil.

This comes after the escalated tariff war declared on Thursday, August 1, against China by the US President.

The prices headed southward after the announcement by Trump that he would from 1 September impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports.

Those exports have so far been spared from Trump’s tariffs. With the existing 25 percent tariffs on $250 billion of imports, a total of $550b worth of Chinese exports to the United States will now be taxed.

“Oil prices plunged by more than 8 percent immediately after the news, pushing WTI below $55 per barrel and Brent down to $61,” PM News reports.

Analysts say the tariff announcement was ill-timed for the oil market, as it was already heading south due to the disappointing result from the U.S. Federal Reserve, which cut interest rates.