San Francisco Frontiers - Trump to decide on oil tariffs on Canada, Mexico

"We're going to make that determination probably tonight," Trump told reporters in the Oval Office when asked about the possibility of levies on oil from the two US neighbors.

He added that the decision "depends on what the price is -- if the oil is properly priced, if they treated us properly."

Trump confirmed he was going ahead with his previously announced plan to begin imposing a 25 percent levy on all Canadian and Mexican imports from Saturday.

It had not previously been clear whether oil would be included or not.

Canada and Mexico supplied more than 71 percent of US crude oil imports in 2023, with nearly 60 percent coming from Canada alone, a congressional report said.

Trump has accused the two key trading partners of failing to tackle illegal immigration and drug trafficking.

He has also ramped up tensions with Ottawa in particular, repeatedly floating the unlikely idea of Canada becoming the 51st US state.

Trump's January 20 inauguration has sparked fears of a return to the global trade wars that marked his first term in office from 2017 to 2021.

The Republican has also been wielding tariffs to back up other policy threats.

He threatened Colombia last week with huge levies for turning back two US military planes carrying undocumented migrants. Bogota then backed down.

China is another possible target, although Trump's tone has varied on whether he will hit America's biggest economic rival with tariffs too.

"With China, I'm also thinking about something, because they're sending fentanyl into our country," he said Thursday, referring to the synthetic opioid drug.

On the campaign trail he promised tariffs as high as 60 percent, but then said on taking office on January 20 that he was considering a level of 10 percent.

Then last week he said he would "rather not," if possible.

F.Edwards--SFF