Trump Considers 25% Tariff on Mexican, Canadian Oil Imports

WASHINGTON, Jan. 30 (Reuters) – U.S. President Donald Trump announced Thursday that he would likely decide by the end of the day whether to impose a 25% tariff on oil imports from Mexico and Canada, potentially taking effect as early as Feb. 1.

“We may or may not. We’re going to make that determination probably tonight,” Trump told reporters at the White House. The proposed tariffs are part of a broader strategy to pressure Mexico and Canada, two of the United States’ top trading partners, to address issues related to fentanyl shipments and migrant flows across U.S. borders.

Trump has repeatedly warned both nations about the potential tariffs, linking them to unresolved concerns over cross-border drug trafficking and immigration. The White House has not yet provided specific details on how the tariffs would be implemented or their potential economic impact.

The office of Canadian Prime Minister Justin Trudeau did not immediately respond to requests for comment. Similarly, Mexico’s economy ministry remained silent on the matter as of Thursday afternoon.

If implemented, the tariffs could escalate tensions in North American trade relations, which have already been strained by recent negotiations over the United States-Mexico-Canada Agreement (USMCA). Analysts warn that such measures could disrupt energy markets and increase costs for U.S. refineries that rely heavily on Canadian crude oil.

Reporting by Steve Holland, Brendan O’Boyle, and David Ljunggren; Writing by Jason Lange; Editing by Caitlin Webber.