COMMODITIES-Crude oil retreats, gold rallies after Trump imposes tariffs

By Karl Plume

CHICAGO, April 2 (Reuters) - Crude oil turned negative on Wednesday afternoon and gold scaled fresh highs after U.S. President Donald Trump announced sweeping tariffs on all U.S. imports, a move that amped up a global trade war and stoked concerns about an economic slowdown.

Grain futures retreated ahead of Trump's tariff announcement and were likely to extend losses as traders awaited retaliatory actions from global importers of U.S. corn, soybeans and other farm products, which are often easy targets for retaliation.

Copper prices drifted higher on Wednesday while aluminum dipped as investors weighed trade actions against supply concerns. MET/L

Trump said on Wednesday that he would impose a 10% baseline tariff on all U.S. imports and even higher duties on dozens of the country's biggest trading partners, including China and the European Union.

Trading partners are expected to respond with countermeasures of their own.

U.S. stock futures sank following the announcement.

Oil prices fell to negative territory after rising by a dollar in post-settlement trade ahead of the tariffs announcement on concerns that a global trade war would dampen demand for crude. O/R

"The oil market reaction has been to the downside on fears of slowing economic growth around the world as a result of the U.S. tariffs and the expectation of retaliatory tariffs from other countries," said Andrew Lipow, president of Houston-based Lipow Oil Associates.

Grain futures retreated on Wednesday as traders worried that U.S. farm exports will suffer if Trump's tariffs trigger retaliation from major buyers like China, the world's top soybean importer, and No. 1 corn buyer Mexico. GRA/

"We're probably going to see a weaker opening led by a weaker Asian market," said Mike Zuzolo, president of Global Commodity Analytics. "The weakness in the dollar could buffer the market and offer some support."