Oil dipped to the lowest level in four years on Wednesday, as China declared that new tariff measures are on tap, the news escalated the trade conflict between the two Cina and the US.

Brent crude dipped 5.9% to $59.11 per barrel, while WTI slumped 6.1% to $55.97 per barrel.

China disclosed on Wednesday that it will raise tariffs on U.S. goods to 84% from 34%, effective Thursday, in retaliation to President Trump’s executive order increasing U.S. tariffs on China by 50%, escalating tensions with the world’s main oil importer.

Brent and WTI have dropped for five consecutive sessions since Trump unveiled broad tariffs on most imports, raising worries about economic outlook and fuel demand.

The tariffs are anticipated to impact China’s economy, potentially reducing the country’s demand for oil imports.

Beijing has continued to adopt strong language in response to Trump’s tariffs, vowing to “fight till the end.”

 In addition, China is predicted to boost its stimulus measures to mitigate the economic impact.

Beijing has maintained a largely harsh rhetoric against Trump’s tariffs, vowing to “fight till the end.” China is also expected to ramp up its stimulus efforts to offset the impact of Trump’s tariffs. 

Beyond China, oil markets remained tense over the wider economic implications of Trump’s tariffs, which could disrupt global trade and hinder economic growth.

U.S. importers are expected to be burdened by Trump’s tariffs, a development that could fuel domestic inflation and weaken economic growth.