Trump's Tariff Threat on Mexican and Canadian Oil Looms

President Donald Trump announced a potential 25% tariff on Mexican and Canadian oil imports, linked to demands for curbing fentanyl shipments and migrant flows. This decision, expected by the end of Thursday, could escalate trade tensions with important trading partners, Mexico and Canada.

On Thursday, U.S. President Donald Trump hinted at a significant policy decision that could reshape trade dynamics with two of the nation's closest allies. Speaking at the White House, Trump revealed the possibility of imposing a 25% tariff on oil imports from Mexico and Canada, with a final decision expected imminently.

The proposed tariff, set to take effect on February 1 if implemented, is part of Trump's broader strategy to pressure Mexico and Canada into halting shipments of fentanyl and controlling the flow of migrants across U.S. borders. This announcement underscores Trump's firm stance on issues affecting national security and trade.

Responses from Canada and Mexico have yet to be disclosed, as representatives from Canadian Prime Minister Justin Trudeau's office and Mexico's economy ministry were not available for immediate comment. The anticipated decision could heighten tensions with these key trading partners.

(With inputs from agencies.)