President Donald Trump's announcement of fresh tariffs on trading partners Canada, Mexico, and China has raised fears about rising prices and the potential impact on supply chains across industries from energy to autos. The president has vowed to impose a 25% tariff on imports from Canada and Mexico, citing concerns over illegal immigration and the flow of fentanyl across borders. Additionally, he has announced a 10% rate on Chinese imports, charging that China had a role in producing the drug. These tariffs pose significant risks for Trump as they threaten to dampen consumer spending and business investment. Inflation is expected to rise by 0.7 percentage points in the first quarter this year with these tariffs, before gradually easing. Trump's supporters have downplayed fears that tariff hikes would fuel inflation. Some suggest that his policy plans involving tax cuts and deregulation could help fuel growth instead. Canada and Mexico are major suppliers of US agricultural products, with imports totaling tens of billions of dollars from each country in a year. Tariffs would also hit the auto industry hard, with US light vehicle imports from Canada and Mexico in 2024 representing 22% of all vehicles sold in the country. Both Canada and Mexico have said they are prepared to respond if Trump acts on tariffs, raising the specter of an escalating conflict. However, White House Press Secretary Karoline Leavitt dismissed concerns of a trade war. Canadian Prime Minister Justin Trudeau said that Ottawa is ready with "a purposeful, forceful, but reasonable, immediate response." Mexican President Claudia Sheinbaum said her government would await any tariff announcement "with a cool head." Hiking import taxes on crude oil from countries like Canada and Mexico could bring "huge implications for US energy prices, especially in the US Midwest," according to David Goldwyn and Joseph Webster of the Atlantic Council. Trump previously said he was considering an exemption for Canadian and Mexican oil imports, and on Friday added that he was mulling a lower rate on oil. He told reporters: "I'm probably going to reduce the tariff a little bit on that." Nearly 60% of US crude oil imports are from Canada, noted the Congressional Research Service. Canadian heavy oil is refined in the United States and regions dependent on it may lack a ready substitute. Canadian producers would bear some impact of tariffs but US refiners would also be hit with higher costs, said Tom Kloza of the Oil Price Information Service. This could bring gasoline price increases?

President Donald Trump's announcement of fresh tariffs on trading partners Canada, Mexico, and China has raised fears about rising prices and the potential impact on supply chains across industries from energy to autos. The president has vowed to impose a 25% tariff on imports from Canada and Mexico, citing concerns over illegal immigration and the flow of fentanyl across borders. Additionally, he has announced a 10% rate on Chinese imports, charging that China had a role in producing the drug. These tariffs pose significant risks for Trump as they threaten to dampen consumer spending and business investment. Inflation is expected to rise by 0.7 percentage points in the first quarter this year with these tariffs, before gradually easing. Trump's supporters have downplayed fears that tariff hikes would fuel inflation. Some suggest that his policy plans involving tax cuts and deregulation could help fuel growth instead. Canada and Mexico are major suppliers of US agricultural products, with imports totaling tens of billions of dollars from each country in a year. Tariffs would also hit the auto industry hard, with US light vehicle imports from Canada and Mexico in 2024 representing 22% of all vehicles sold in the country. Both Canada and Mexico have said they are prepared to respond if Trump acts on tariffs, raising the specter of an escalating conflict. However, White House Press Secretary Karoline Leavitt dismissed concerns of a trade war. Canadian Prime Minister Justin Trudeau said that Ottawa is ready with "a purposeful, forceful, but reasonable, immediate response." Mexican President Claudia Sheinbaum said her government would await any tariff announcement "with a cool head." Hiking import taxes on crude oil from countries like Canada and Mexico could bring "huge implications for US energy prices, especially in the US Midwest," according to David Goldwyn and Joseph Webster of the Atlantic Council. Trump previously said he was considering an exemption for Canadian and Mexican oil imports, and on Friday added that he was mulling a lower rate on oil. He told reporters: "I'm probably going to reduce the tariff a little bit on that." Nearly 60% of US crude oil imports are from Canada, noted the Congressional Research Service. Canadian heavy oil is refined in the United States and regions dependent on it may lack a ready substitute. Canadian producers would bear some impact of tariffs but US refiners would also be hit with higher costs, said Tom Kloza of the Oil Price Information Service. This could bring gasoline price increases?