Oil prices have surged following President Donald Trump’s confirmation of tariffs on imports from Canada and Mexico, the largest crude suppliers to the US. West Texas Intermediate (WTI) futures rose 2.5% to $70.15 per barrel as of 27 February 2025.
The tariffs, set for 4 March, include a 25% levy on most imports from Canada and Mexico, with a lower 10% tariff on Canadian energy products. This may disrupt the North American oil industry, as many US refineries are configured for heavy crude from Canada and Mexico, making substitution costly.
Analysts expect short-term upward pressure on US crude prices but warn of broader economic impacts, including inflation risks. Trump also announced plans to double tariffs on Chinese imports to 20%, further increasing market uncertainty.
