Trump to Decide on 25% Import Tariffs for Canadian and Mexican Oil Amid Trade Tensions
Jakarta, CNN Indonesia — US President Donald Trump is set to make a critical decision tonight on whether to include oil in the 25 percent import tariffs imposed on products from Canada and Mexico. The tariffs, effective from February 1, 2025, are part of a broader strategy to address illegal immigration and the fentanyl trade across US borders.
“We might put it in or not. We will make that decision maybe tonight,” Trump told reporters,as reported by reuters on Friday (1/31). The decision hinges on factors such as oil prices and whether the two neighboring countries “treat the US well.”
The Mexican and Canadian governments have remained silent on Trump’s latest remarks. Though,the move has sparked concerns about its potential impact on trade relations and energy markets.
Tariffs as a Tool for Policy Goals
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Trump’s decision to impose a 25 percent tariff on imports from Canada and Mexico is aimed at pressuring the two nations to take stronger action against illegal immigration and the flow of fentanyl into the US. “The purpose of this high levy was to encourage the two largest US trading partners to take action to stop illegal immigrants and fentanyl delivery across the borders of the countries into the US,” the report stated.The inclusion of oil in these tariffs could significantly affect energy markets, given the US’s reliance on canadian crude imports.
China in the Crosshairs
Trump also hinted at new tariffs on Chinese goods, citing China’s role in the fentanyl trade. “Wiht China, I also think about something as they send fentanyl to our country and thus they caused hundreds of thousands of deaths to our citizens. So China will pay the tariff for that and we are in the process of doing so,” he said.
He threatened to impose a 10 percent import duty on all Chinese goods, building on the $370 billion in tariffs levied during his first term. “China must stop sending fentanyl to our country and kill our people,” Trump emphasized.
In 2023, Chinese President Xi Jinping pledged to collaborate with then-US President Joe Biden to curb fentanyl shipments to the US. Beijing also urged Washington to address domestic drug demand.
key Points at a Glance
| Aspect | Details |
|————————–|—————————————————————————–|
| Tariff Rate | 25 percent on imports from Canada and Mexico |
| Effective Date | february 1, 2025 |
| Oil Inclusion | Decision pending, based on price and bilateral relations |
| China Tariffs | Potential 10 percent duty on all Chinese goods |
| Primary Goal | Curb illegal immigration and fentanyl trade |
What’s Next?
As Trump weighs his options, the global trade landscape remains on edge. The inclusion of oil in the tariffs could reshape energy markets, while new tariffs on china may escalate trade tensions.
Stay tuned for updates on this developing story and its implications for international trade and diplomacy.For more insights on global trade policies, visit CNN Indonesia.
Trump’s Tariff Decision on Canadian and Mexican Oil: Expert Insights on Trade Tensions and policy Goals
Jakarta, CNN Indonesia — US President Donald Trump faces a pivotal decision tonight: whether to include oil in the 25 percent import tariffs on Canadian and Mexican products, effective February 1, 2025. This move, part of a broader strategy addressing illegal immigration and the fentanyl trade, could reshape energy markets and escalate trade tensions. To discuss the implications,senior Editor John Carter sat down with international trade expert Dr.emily Robertson,a professor of Economics at Harvard University.
tariffs as a Tool for Policy goals
John Carter: Dr. Robertson, President Trump’s decision to impose a 25 percent tariff on imports from Canada and Mexico is aimed at pressuring these countries to curb illegal immigration and the fentanyl trade. How effective do you think tariffs are as a policy tool in this context?
Dr. Emily Robertson: tariffs can be a powerful tool for leverage, but they come with meaningful risks. In this case, the US is using tariffs to address non-trade issues like immigration and drug trafficking. While it might push Canada and Mexico to take stronger action, it could also strain diplomatic and economic relationships. Such as, the inclusion of oil in these tariffs could disrupt energy markets, given the US’s reliance on Canadian crude imports[[3]].
Impact on Canadian and Mexican Economies
John Carter: How might this decision affect Canada and Mexico, notably if oil is included in the tariffs?
Dr. Emily Robertson: The impact could be substantial, especially for Canada. Alberta,being Canada’s oil-exporting hub,would feel the brunt of reduced exports to the US. Mexico, while less dependent on oil exports to the US, would still face economic challenges. Both countries might retaliate, further escalating trade tensions[[2]]. This could lead to broader instability in North American trade relations,which have already been under strain due to rising protectionism[[1]].
China in the Crosshairs
John Carter: President Trump has also hinted at imposing a 10 percent tariff on all Chinese goods,citing China’s role in the fentanyl trade. How do you see this playing out?
Dr. Emily Robertson: This move would escalate US-China trade tensions substantially. Trump’s focus on fentanyl as a justification for tariffs is unconventional, as trade policy is rarely used to address drug trafficking. While it might pressure China to curb fentanyl production and exports, it could also provoke Beijing to impose counter-tariffs, reigniting a trade war. Given that $370 billion in tariffs were already levied during Trump’s first term, this could further destabilize global trade relationships.
What’s Next?
John Carter: As Trump weighs his options, what should we expect in the coming weeks regarding these tariffs and their global impact?
Dr. Emily Robertson: The global trade landscape remains volatile. If oil is included in the tariffs, we could see significant shifts in energy markets, potentially driving up prices. The proposed tariffs on China could also heighten tensions, as Beijing is unlikely to take such measures lightly. Businesses and governments alike should prepare for potential disruptions in supply chains and trade flows.
Conclusion
John Carter: Thank you, Dr. Robertson, for your insightful analysis. It’s clear that Trump’s tariff decisions carry far-reaching implications, not just for the US but for its trading partners and the global economy. The next few weeks will be critical in determining the direction of international trade and diplomacy.
For more insights on global trade policies, visit CNN Indonesia.
