Trump to Impose 25% Tariffs on Canada & Mexico – Oil Exemption Still Unclear

US President Donald Trump has confirmed that he will impose a 25% tariff on imports from Canada and Mexico starting February 1. However, he has not yet finalized whether oil imports from these countries will be subjected to the tariff.

Trump, speaking from the Oval Office, linked the move to increasing border security concerns, including the flow of undocumented migrants and fentanyl into the US. Additionally, he hinted at new tariffs on China, citing its role in fentanyl trafficking and its impact on American lives.

During his election campaign, Trump had promised tariffs of up to 60% on Chinese products. While his administration is still assessing this, economists believe that past tariff hikes, particularly those imposed during Trump’s first term, have already reduced US imports from China.

Meanwhile, Canada and Mexico have warned of retaliatory measures if the US proceeds with the tariffs. Experts suggest that tariffs on oil imports could backfire, increasing costs for businesses and consumers and potentially affecting fuel prices. Currently, about 40% of the crude oil refined in the US comes from imports, with the bulk of it sourced from Canada.

This escalating trade conflict raises concerns over economic stability and potential repercussions on global markets.