Oil prices began to fall after US President Donald Trump’s announcement of possible tariffs on China, raising fears of trade conflicts on several fronts. Earlier, Trump announced his intention to introduce tariffs on imports from Canada and Mexico, informs Bloomberg.
Brent crude fell to nearly $79 a barrel, while West Texas Intermediate fell below $76. Trump announced the possibility of introducing a 10% tariff on imports from China in response to the problem of fentanyl supply from that country. At the same time, Canada increased crude oil exports to the US in an attempt to avoid future tariffs.
Trump’s first actions as president included a review of US energy policy and threats of tariffs on Canadian and Mexican imports that could reach 25%. Both countries are key suppliers of goods to the US, including the oil used in US refineries.
Currently, Canadian suppliers are trying to maximize exports before the tariffs are imposed. Analysts warn that such actions may lead to higher gasoline prices for American consumers. The introduction of tariffs is planned from February 1.
