WASHINGTON —President Donald Trump signed a trio of executive orders on Saturday that imposed 25% tariffs on imports from Canada and Mexico and a 10% duty on imports from China as he sought to force the countries to clamp down on the flow of migrants and fentanyl across their borders and into the U.S.
An exception was made on oil. Tariffs on energy imports from Canada were set at a lower rate of 10%, a White House official said, to minimize the potential for disruptions on gasoline and home heating oil prices.
The new tariffs on imports from all three nations are on top of existing tariffs.
Canada and Mexico are the top sources of U.S. crude imports, together accounting for around one-quarter of the oil U.S. refiners process into fuels such as gasoline and heating oil, according to the U.S. Department of Energy.
In 2022, Canada accounted for 60% of crude oil imports to the U.S. while 10% of crude oil came from Mexico, according to the U.S. Energy Information Administration.
Refineries purchase crude oil to produce gasoline, diesel fuel, and other petroleum products.
Tariffs have been central to Trump’s economic strategy, used to increase tax revenue, protect jobs and as a negotiating tool.
Economists have long warned that tariffs –duties on imports— will boost inflation and hurt customers.
But Trump has dismissed those concerns.
“Tariffs don’t cause inflation. They cause success,” Trump said on Friday. “There could be some temporary short-term disruption, and people will understand that.”
Swapna Venugopal Ramaswamy is a White House Correspondent for USA TODAY. You can follow her on X @SwapnaVenugopal
