09:19 AM EDT, 04/09/2025 (MT Newswires) -- Oil prices fell to fresh four-year lows early on Wednesday on expectations economies will slump as China, Canada and the European Union push back against tariffs imposed by U.S. President Donald Trump in an international trade war likely to cut demand for energy.

West Texas Intermediate crude oil for May delivery was last seen down US$3.50 to US$56.08 per barrel, the lowest since February, 2021, while June Brent oil was down US$3.54 to US$59.28.

China on Wednesday said it is imposing an 84% tariff on imports from the United States, up from the 34% level announced last week, a day after Trump put a 104% levy on the imports from the country. Canada's 25% retaliatory tariff on automobiles from the United States took effect on Wednesday while the European Union is readying levies of up to 25% on U.S. goods.

The tit for tat tariff war is again causing chaos in global stock markets, with Asian and European bourses mostly lower while futures point to sharply lower opens for North American exchanges. The inevitable slowdown in global trade is also likely to stall growth and cut into demand for oil.

"Crude prices slumped to a four-year low with focus squarely on the escalating global trade war and its potential negative impact on growth and demand for energy," Saxo Bank noted.

The drop in oil comes even as South Bow (SOBO.TO) shuttered its 591,000 barrel per day Keystone pipeline that carries Canadian crude oil to U.S. refineries following a line breach in North Dakota, cutting into supply.