Ammon News - U.S. crude prices fell by nearly 2% on Tuesday as U.S. tariffs on China took effect, though President Donald Trump paused for a month a decision on steep levies on neighbours Canada and Mexico.

U.S. West Texas Intermediate (WTI) crude declined $1.32, or 1.8%, to trade at $71.84 per barrel, while Brent futures fell 87 cents, or 1.2%, to $75.09 by 0617 GMT.

U.S. tariffs of 10% on Chinese imports took effect at mid-day in Asian trade, spurring Beijing to retaliate with levies of 15% on U.S. coal and liquefied natural gas and 10% on crude oil starting from Feb. 10.

"China’s counter-tariffs on the US may be perceived as a sign of escalation and may reduce the likelihood of a temporary resolution akin to U.S. agreements with Mexico and Canada," IG market strategist Yeap Jun Rong said in an email. Reuters