The US now impose a 25% tariff on $250 billion worth of Chinese imports.
Oil prices fell on Monday on global growth concerns after U.S. President Donald Trump threatened China with more tariffs, which could limit crude demand from the world's two biggest buyers. This led to a 1% drop in WTI crude for the week and a 2.5% weekly loss for Brent crude.
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading lower on Monday but inside last Thursday's wide range.
The West Texas Intermediate for September delivery decreased 0.97 US dollar to settle at 54.69 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery fell 2.08 dollars to close at 59.81 dollars a barrel on the London ICE Futures Exchange.
Both of the benchmarks fell last week, with Brent dropping more than 2% and USA crude ending the week around 1% lower.
Trump also said that other countries, fearful of being punished with U.S. levies like China is, are clamoring to reach trade deals with the United States.
Prices of oil plunged over 7% after Trump bared on Twitter that the U.S. would start charging 10% tariffs on $300-billion worth of Chinese products in September.
China Brushes Off Trump Suggestion Of Joining New Arms Treaty
Moscow denies it has violated the treaty and says Washington is withdrawing because it wants to pursue a new arms race. On Friday, Pompeo said President Trump is beginning "a new chapter" and "a new era of arms control".
"Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it's not the correct way", Chinese Foreign Minister Wang Yi said Friday.
On Monday, China let the yuan tumble beyond the key 7-per-dollar level for the first time in more than a decade, in a sign Beijing may tolerate further currency weakness because of the trade dispute.
US stocks closed sharply lower on Monday.
China, once the top buyer of USA crude, had slashed its purchases previous year as the trade war dragged on.
Tensions in the Middle East offered some support to prices, with Iran seizing a tanker that it said was smuggling fuel.
Myron Brilliant, executive vice president and head of worldwide affairs at the U.S. Chamber of Commerce, said in a statement that the new tariffs "will only inflict greater pain" on American businesses, farmers, workers and consumers, and undermine the U.S. economy. A cheaper yuan would raise the cost of dollar-denominated oil imports in China, the world biggest crude oil importer.
Last week, Iran called on China and other "friendly countries", as it put it, to buy more crude oil from the Islamic Republic.