Trump May Exclude Oil From Canada and Mexico Tariffs | OilPrice.com
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Breaking News:
President Donald Trump may exclude crude oil from the tariff shock he is preparing to deliver to Canada and Mexico this Sunday.
The tariffs are Trump’s way to strong-arm the U.S. neighbors into stemming the flow of fentanyl into the country.
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“They send us oil — we’ll see,” Trump told media on Thursday evening, as quoted by the Financial Times. “It depends on what the price is. If the oil is properly priced, if they treat us properly — which they don’t.”
In separate comments earlier in the week, however, Trump said “We don’t need the products that they have. We have all the oil that you need.”
Canada and Mexico are the biggest suppliers of crude oil to the United States, with Canadian exports close to 4 million barrels daily and Mexican exports around 730,000 barrels daily. Because of the prominence of both as trading partners in energy many analysts have argued that Trump’s threats are only a tactic to get Mexico and Canada to take care of immigration and fentanyl smuggling.
“We’ll be announcing the tariffs on Canada and Mexico for a number of reasons,” Trump told reporters on Thursday.
“Number one is the people that have poured into our country so horribly and so much. Number two are the drugs fentanyl and everything else that have come into the country. Number three are the massive subsidies that we’re giving to Canada and to Mexico in the form of deficits.”
Another reason Trump is likely to exclude oil from the tariffs is the fact that if he goes ahead and doesn’t, this would affect retail fuel prices in the United States and it will not be a favorable effect. One of Trump’s campaign promises was to bring prices at the pump down, so tariffing Canadian and Mexican crude would go against this promise.
By Irina Slav for Oilprice.com
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