Trump to Decide on Oil Tariff Exemptions for Canada and Mexico Says China May Also Face New Trade Penalties

U.S. President Donald Trump announced on Thursday that he will soon decide whether to exempt oil imports from Canada and Mexico from the 25% tariffs he plans to impose starting Saturday.

Trump reaffirmed his commitment to imposing tariffs on Canadian and Mexican oil but noted that his final decision would depend on oil prices and how the two nations handle their exports.

"We may or may not. We’re going to make that determination probably tonight," he stated.

Trump linked the potential tariffs on Mexico and Canada to border security concerns, saying he aims to pressure both countries into taking stronger action to stop fentanyl shipments and illegal migration into the U.S.

He also hinted that the tariff rate could increase over time, suggesting the North American duties would serve multiple purposes beyond just trade.

Beyond North America, Trump said he is considering new trade penalties against China, citing its role in fentanyl trafficking into the United States.

"With China, I’m also thinking about something because they’re sending fentanyl into our country, and because of that, they’re causing us hundreds of thousands of deaths."

During his first term, Trump imposed punitive tariffs on over $370 billion worth of Chinese imports. He has now threatened to introduce a 10% levy on all Chinese goods unless China halts fentanyl exports.

"China has to stop sending fentanyl into our country and killing our people. We’ll make a determination on what it’s going to be, but China is going to end up paying a tariff also for that, and we’re in the process of doing that," he added.

A final decision on these trade measures is expected soon.