Finance
Oil prices jump after Trump imposes tariffs on Canada, Mexico, China
Published by Global Banking & Finance Review®
Posted on February 2, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 2, 2025
2 min readLast updated: January 26, 2026
Oil prices rise as Trump imposes tariffs on Canada, Mexico, and China, raising trade war fears and impacting US crude supply.
SINGAPORE (Reuters) - Oil prices jumped at the market open on Monday after U.S. President Donald Trump imposes tariffs on Canada, Mexico and China, raising fears of a trade war and disruption in crude supply from two of the United States' biggest suppliers.
U.S. West Texas Intermediate crude was at $74.27 a barrel, up $1.74, or 2.4%, by 2319 GMT, after hitting more than a week's high at $75.18 a barrel earlier in the session.
Brent crude futures rose 73 cents, or 1%, to $76.40 a barrel.
Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, kicking off a trade war that could dent global growth and reignite inflation.
Energy products from Canada will have only a 10% duty, but Mexican energy imports will be charged the full 25%, White House officials said.
The tariffs on the two biggest sources of U.S. crude imports will raise costs for the heavier crude grades U.S. refineries need for optimum production, industry sources said, cutting their profitability and potentially forcing production cuts.
That would offer European and Asian refineries a competitive advantage against their U.S. rivals, analysts and market participants said.
(Reporting by Florence Tan; Editing by Jamie Freed)
Oil prices jumped after U.S. President Donald Trump imposed tariffs on Canada, Mexico, and China, raising fears of a trade war.
U.S. West Texas Intermediate crude was at $74.27 a barrel, while Brent crude futures rose to $76.40 a barrel.
Energy products from Canada will have a 10% duty, while Mexican energy imports will be charged the full 25%.
The tariffs on U.S. crude imports will raise costs for heavier crude grades needed for optimum production, potentially cutting profitability.
The tariffs could offer European and Asian refineries a competitive advantage against their U.S. rivals, according to analysts.
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