The carveouts for energy in President Trump’s sweeping tariffs can’t shield the sectors from collateral damage as markets digest the sweeping global penalties.

The latest: U.S. crude oil prices are down more than 6% this morning, even though oil, gas and certain minerals are exempted.

• New OPEC+ plans to speed up supply additions are also weighing on oil prices.

Why it matters: The quick drop suggests traders see a global economic hit large enough to soften consumption growth.

• “The scale of some of Trump’s tariffs will raise global demand concerns,” ING analysts said in a note.
• “For oil prices, the focus now shifts to the global growth outlook, which is likely to be revised downward due to these higher-than-expected tariffs,” IG strategist Yeap Jun Rong tells Reuters.

State of play: XOP, an exchange-traded fund that tracks the U.S. oil and gas exploration and production sector, was down 5% pre-market.

Catch up fast: Trump wants to reshape the global economy in a way that he believes will create a golden age for U.S. industry, Axios’ Courtenay Brown and Neil Irwin report.

• The president on Wednesday announced reciprocal tariffs of 10%, but they’re higher for the EU and especially China, among other places.
• He acted against the advice of most business leaders, many economists and even some Republican officials.

What we’re watching: The fallout for low-carbon energy sectors like wind, solar and EVs.

• The U.S. industries tout the growth of domestic manufacturing but often have global supply chains and now face higher costs.
• Some groups called Trump’s sweeping move a threat.

What they’re saying: The American Clean Power Association said tariffs “have their place as a policy tool to carry out macroeconomic policy” but added that such “broad” measures are harmful.

• “The policy whiplash from these tariffs will ultimately undermine the ability to realize a domestic supply chain and will constrain efforts to deliver energy security and reliability for Americans,” said Vanessa Sciarra, vice president of trade and international competitiveness.

On the EV and battery front, the Zero Emission Transportation Association noted that longstanding trading partners have committed billions of dollars in direct investment in U.S. factories.

• Tariffs on them introduce “uncertainty and risk into an industry that is creating jobs and bringing new economic opportunities to communities across the country,” executive director Albert Gore said in a statement.

What’s next: Officials in the European Union, China and North American neighbor Canada say they’re preparing countermeasures in response to Trump’s announcement, Axios’ Rebecca Falconer reports.

The bottom line: “At this early stage, it’s difficult to fully assess the long-term impact of these tariffs on the global economy, but there will undoubtedly be immediate and severe consequences,” Rystad Energy analyst Claudio Galimberti said in an analysis circulated to reporters.

Editor’s note: This story was updated to reflect the latest change in oil prices.