President Trump announced 25% tariffs on goods from Canada and Mexico, citing concerns over illegal immigration and fentanyl. The potential extension of these tariffs to oil imports has raised concerns about rising gas prices and strained relations with key trading partners.
President Donald Trump declared that 25% tariffs on goods imported from Canada and Mexico will commence on Saturday. However, he has yet to finalize his decision regarding the inclusion of oil imports within the tariff measure. Addressing the nation from the Oval Office on Thursday, Trump indicated that he would make this determination by the end of the day, basing his judgment on whether he perceives the two trading partners as charging the U.S. a 'fair' price for oil.
While the tariffs have been presented as a response to concerns surrounding illegal immigration and fentanyl trafficking, extending them to encompass oil could significantly impact both gas prices and inflation. This action stands in contrast to Trump's previous campaign pledge to reduce energy costs by half within a year of assuming office.Trump's threat to impose tariffs on oil imports has sparked apprehension regarding a potential surge in gas prices, a crucial matter for voters. Canada and Mexico are major oil suppliers to the United States. Canada alone accounted for nearly 4.6 million barrels per day in October 2024, according to the U.S. Energy Information Administration. The potential tariffs could result in increased expenses for refineries that rely on Canadian and Mexican crude, possibly leading to a rise in gasoline prices. On Thursday, U.S. oil prices were trading around $73 per barrel, considerably below the peak of over $120 per barrel in 2022, but industry experts caution that tariffs could drive prices upwards.Matthew Holmes, executive vice president at the Canadian Chamber of Commerce, criticized this move, warning that tariffs on Canadian oil would ultimately harm American consumers. 'This is a lose-lose,' Holmes stated to the Associated Press. 'We will continue to work with partners to demonstrate to President Trump and Americans that this does not make life more affordable. It makes life more expensive and disrupts our integrated businesses.' Trump, however, dismissed these concerns regarding price increases, asserting that the U.S. does not rely on imports. 'We don't need the products that they have,' Trump remarked. 'We have all the oil you need. We have all the trees you need, meaning the lumber.' The new tariffs, particularly if extended to oil, could have a direct impact on everyday consumers. Increased costs for imported crude oil could lead to higher gasoline prices, contradicting Trump's campaign promise to cut energy prices in half. Furthermore, this move could strain relations with Canada and Mexico, two of the U.S.'s closest trading partners, and potentially provoke retaliatory trade measures that could affect other sectors beyond energy
TRADE WAR CANADA MEXICO OIL TARIFFS GAS PRICES DONALD TRUMP IMMIGRATION FENTANYL
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