Oil Prices Surge As Trump Imposes Higher Tariffs On Canada, Mexico

Oil prices soared after President Donald Trump imposed hefty tariffs on a range of imports, including crude oil from Canada and Mexico, raising concerns over higher costs for American consumers, Yongchang Chin reported for Bloomberg News.

Oil prices surged despite a strengthening U.S. dollar.

U.S. benchmark West Texas Intermediate (WTI) crude rose as much as 3.7% before paring gains to trade near $74 per barrel. Trump followed through on his threats to impose 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods, starting Tuesday.

The move has triggered pledges of retaliation and left a narrow window for last-minute negotiations.

The global benchmark, Brent crude, climbed above $76 per barrel. Canadian energy exports face a reduced 10% tariff, affecting roughly 4 million barrels per day of crude shipments.

The U.S. imports most of its oil from Canada, along with approximately 500,000 barrels per day from Mexico. Higher feedstock costs are expected to drive up gasoline prices, with gasoline futures in New York jumping as much as 6.2%.

Oil prices surged despite a strengthening U.S. dollar, which recorded its biggest gain since November. A stronger dollar typically makes commodities priced in the currency more expensive for global buyers.