President Trump announced 25% tariffs on Canadian and Mexican goods, raising concerns about rising gas prices and strained relations with key trading partners. While the tariffs are framed as a response to immigration and drug trafficking, the potential inclusion of oil imports could significantly impact energy costs and inflation.
President Donald Trump announced that 25% tariffs on Canada and Mexico will go into effect on Saturday, but he has not yet decided whether to include oil imports in the measure. Speaking from the Oval Office on Thursday, Trump said he would make the determination by the end of the night, basing his decision on whether he believes the two trading partners are charging the U.S. a 'fair' price for oil.
While the tariffs were framed as a response to illegal immigration and fentanyl-related concerns, extending them to oil could impact gas prices and inflation. The move comes despite Trump’s previous campaign promise to cut energy costs in half within a year of taking office.Trump’s threat to include oil in the new tariffs has raised concerns about rising gas prices, a key issue for voters. Canada and Mexico are major oil suppliers to the U.S., with Canada alone accounting for nearly 4.6 million barrels per day in October 2024, according to the U.S. Energy Information Administration. The potential tariffs could lead to increased costs for refineries that rely on Canadian and Mexican crude, possibly pushing gas prices higher. On Thursday, U.S. oil prices were trading at approximately $73 per barrel, well below the peak of over $120 per barrel in 2022, but industry experts warn that tariffs could drive prices up.Matthew Holmes, executive vice president at the Canadian Chamber of Commerce, criticized the move, warning that tariffs on Canadian oil would ultimately hurt American consumers.'This is a lose-lose,' Holmes told the Associated Press. 'We will keep working with partners to show President Trump and Americans that this doesn’t make life any more affordable. It makes life more expensive and sends our integrated businesses scrambling.' Trump, however, dismissed concerns over price increases, insisting the U.S. does not rely on imports.'We don’t need the products that they have,' Trump said. '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, despite Trump’s campaign promise to cut energy prices in half. Additionally, the move could strain relations with Canada and Mexico, two of the U.S.’s closest trading partners, and spark retaliatory trade measures that could affect other sectors beyond energy
TRUMP TARIFFS CANADA MEXICO OIL ENERGY ECONOMY TRADE
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada Threatens Retaliatory Tariffs on US Goods if Trump Imposes 25% TariffsCanada is considering retaliatory tariffs on American products if President-elect Donald Trump follows through on his threat to impose 25% tariffs on all Canadian goods.
Read more »
Canada will ‘respond robustly’ if Trump imposes ‘unfair tariffs,’ says PM TrudeauTrump said in an Oval Office signing ceremony on Monday that his administration will impose a 25% tax on goods from Canada and Mexico that may come as soon as February 1 – a move that could raise prices for American consumers.
Read more »
Trudeau Warns of Higher Prices for Americans if Trump Imposes Tariffs on CanadaCanadian Prime Minister Justin Trudeau warns that American consumers will face increased prices on various goods if President Donald Trump imposes tariffs on Canadian products as planned.
Read more »
Trudeau warns of higher prices for Americans if Trump imposes tariffs on CanadaOutgoing Canadian Prime Minister Justin Trudeau warned that American consumers will face higher prices if President Donald Trump follows through with his threat to impose sweeping tariffs on Canadian products. Trump reiterated his plan to tariff Canada and Mexico at 25% rates starting February 1st. Trudeau stated that Canada will retaliate with its own tariffs, resulting in increased costs for American consumers on various goods. He emphasized the importance of US-Canada cooperation in energy, critical minerals, and goods for economic growth, urging Trump to reconsider the tariffs.
Read more »
Car Prices Could Soar If Trump Imposes Tariffs on Mexico and CanadaTom Maoli, owner of a New Jersey car dealership, warns that drivers could face significant price increases if President Trump follows through on his 25% tariff threat against Mexico and Canada. He explains that tariffs on imported parts, many of which originate from these countries, will inevitably be passed on to consumers, leading to a 5% to 15% jump in new car prices. Used car prices would also rise due to increased demand. Maoli highlights that even routine car repairs would become more expensive, as parts like brake pads and washer fluid are also imported. While some hope tariffs might incentivize car manufacturing to return to the U.S., this process could take 18-24 months, leaving consumers vulnerable to immediate price hikes.
Read more »
Trudeau Warns of Higher Prices for Americans if Trump Imposes Tariffs on CanadaOutgoing Canadian Prime Minister Justin Trudeau warns of increased prices for American consumers if President Donald Trump implements tariffs on Canadian goods. Trump has stated his intention to impose 25 percent tariffs on Canada and Mexico starting February 1st. Trudeau emphasizes Canada's readiness to retaliate with tariffs if Trump follows through, potentially impacting a wide range of products.
Read more »