Amid soaring energy prices and growing concerns over domestic oil production, President Donald Trump is reportedly considering reintroducing tariffs on imported oil to boost American energy independence. The move would be a bold step in Trump’s ongoing threats to impose 25 percent tariffs on imports from Mexico and Canada. While Trump’s focus on stopping illegal immigration and the smuggling of chemicals used for fentanyl across the borders between the countries is his primary concern, the president’s suggestion of imposing tariffs on oil would be seen as a necessary action to safeguard U.S. economic interests and reduce reliance on foreign energy sources.
Trump told reporters that his administration has not decided whether oil imports would be part of the policy. He emphasized that the decision would hinge on whether Mexico and Canada “treat us properly” and “the oil is properly priced.”
“We may or may not,” Trump said. “Oil is going to have nothing to do with it as far as I’m concerned. We’re going to make that determination probably tonight on oil. Because they send us oil, we’ll see – it depends on what their price is.”
Brent crude futures for March, which are set to expire on Friday, fell seven cents to $76.81 a barrel by 1:38 p.m. EST. The more actively traded second-month futures decreased six cents to $75.84. Meanwhile, U.S. West Texas Intermediate crude dropped 12 cents, or 0.2 percent, to $72.61.
The president dismissed concerns that import taxes on America’s trading partners would harm the domestic economy, insisting that the move would ultimately benefit U.S. interests.
“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.”
Last week, Mexican President Claudia Sheinbaum said that if the U.S. raised tariffs, Mexico would also raise tariffs. However, on Friday, she told reporters that Mexico would “wait with a cool head” before deciding how to respond to Trump’s tariffs threat.
As far as Canada is concerned, former Prime Minister Justin Trudeau warned Canadians to prepare for hard times. However, he said the country would respond immediately to the tariff increase.
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