When Trump answered questions from reporters at the White House on Thursday, his answers about tariffs were vague, especially about oil.
We'll see, maybe, maybe not, says Trump.
He also says that it depends on whether Canada and Mexico take reasonable prices for the oil the USA buys from them, two of the USA's most important trading partners. Tariffs would mean a unilateral breach of the free trade agreement between the three countries, an agreement that came into force during Trump's first four years as president.
Canada accounted for approximately 60 percent of the USA's oil imports last October, and Mexico for a small additional part, together making up around two-thirds of the imports. If 25 percent tariffs were imposed, it could contradict the new president's promises to halve energy prices within a year, if the tariffs lead to higher consumer prices.
We don't need their products. We have all the oil we need and all the timber we need, says Trump.
Trump threatened in November to impose 25 percent tariffs on Mexico and Canada if they do not stop migrants and fentanyl from entering the USA. He then also said that China would feel the impact of higher tariffs because the country does not do what it should to stop the drug fentanyl from being delivered from China to the USA, via Mexico and Canada.
