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Trump confirms 25% tariffs on Canada and Mexico but remains undecided on oil. Experts warn tariffs could raise gas prices, contradicting his campaign promises to lower energy costs.
Trump’s tariffs may impact gas prices; oil decision still pending.
UPDATED: Jan 31, 2025 23:51 IST
President Donald Trump has confirmed that his 25% tariffs on Canada and Mexico will take effect on Saturday. However, he remains undecided on whether to include oil imports in the new tariffs.
Will oil be taxed? Decision soon
“We may or may not,” Trump said on Thursday in the Oval Office, noting that a final decision on oil tariffs could come later that night.
The president argues that his tariff plan aims to curb illegal immigration and stop the smuggling of fentanyl-related chemicals. But his stance on energy pricing remains unclear—he claims he wants “fair” pricing from Canada and Mexico.
Could tariffs backfire?
Tariffs on oil could have a direct impact on gas prices, which Trump has made a key issue in his campaign. He has repeatedly promised to slash energy costs, even pledging at a 2024 town hall in Pennsylvania:
“One year from Jan. 20, we will have your energy prices cut in half all over the country.”
However, economic experts warn that tariffs could push gas prices higher, contradicting his campaign promise. AP VoteCast found that 80% of voters identified gas prices as a major concern, with nearly 6 in 10 of them backing Trump in the last election.
How much oil does the US import?
According to the Energy Information Administration, the United States imported 4.6 million barrels per day from Canada and 563,000 barrels from Mexico in October. That same month, US domestic oil production averaged 13.5 million barrels per day.
Matthew Holmes, an executive at the Canadian Chamber of Commerce, criticized Trump’s tariff plan, saying it would “tax America first” by raising costs for businesses and consumers.
“This is a lose-lose,” Holmes said. “It makes life more expensive and sends our integrated businesses scrambling.”
Trump dismisses economic concerns
Despite concerns that tariffs could drive up inflation, Trump said: “We don’t need the products that they have,” he said. “We have all the oil you need.”
Currently, Oil prices are hovering around $73 per barrel, lower than the $120 per barrel peak in mid-2022 under President Joe Biden, when inflation hit a four-decade high. According to AAA, Gas prices now average $3.12 per gallon, roughly the same as a year ago.
(Source: Associated Press)
Published By:
indiatodayglobal
Published On:
Jan 31, 2025
