Oil prices surge as Trump threatens tariffs on Canada and Mexico

Oil prices jumped after U.S. President Donald Trump renewed his threat to impose 25% tariffs on imports from Canada and Mexico starting Saturday, despite uncertainty over whether crude oil would be exempt.

Brent crude surpassed $77 per barrel, while West Texas Intermediate (WTI) approached $73.

Trump also hinted at targeting China, further stoking global trade tensions. A decision on whether crude oil will be included in the tariffs is expected within hours.

Deepening trade tensions: Trump eyes Canadian and Mexican oil

Trump is considering tariffs on oil imports from Canada and Mexico, but the final decision hinges on price stability. While sanctions on Russia and cold weather have driven strong oil demand, Trump's aggressive stance on tariffs could disrupt markets.

Despite recent gains, oil prices remain in flux as OPEC+ faces pressure from Trump to lower prices by boosting production. Market analysts expect OPEC+ to stick to its gradual supply increase plan, scheduled to begin in April.

Market fallout: Trump's moves shake global energy & stocks

Trump’s threats have sent shock waves through the energy sector and financial markets:

• Nasdaq tumbled 3%, its worst decline in two years.
• Nvidia’s stock plunged 17%, wiping out $589 billion in market value—the largest single-day loss in history.
• Nvidia CEO Jensen Huang personally lost $20.8 billion in net worth.

Meanwhile, Valero Energy Corp., the third-largest fuel producer in the U.S., warned that domestic refineries may scale back production if the tariffs make foreign oil imports too expensive.

Earlier, Trump hinted that he might exempt crude oil from tariffs, with a final decision expected Thursday evening. His stance? "We don’t need their products. We have all the oil we need."

Canada & Mexico ready to retaliate

Both Canada and Mexico have signaled they will not back down, setting the stage for a potential trade war:

• Canada has prepared a $105 billion retaliation list, targeting U.S. exports, including steel and key industrial goods.
• Prime Minister Justin Trudeau is considering taxing Canadian oil exports, a move that could further escalate tensions.

With oil markets, trade relations, and global finance in the balance, Trump's next move could have far-reaching consequences.