Trump Exempts Oil, Canada, Mexico from New Tariffs

On April 2, President Donald Trump announced a 10% baseline tariff on all imports to the United States, while exempting oil, gas, and refined products, a move welcomed by the U.S. oil industry concerned about potential disruptions. The new tariffs will not apply to energy imports from Canada and Mexico, which are already exempt under the USMCA agreement. Trump also indicated that specific reciprocal tariffs will affect countries like China and the European Union, with penalties set to take effect on April 9. Markets reacted negatively, with significant drops in stock futures following the announcement. Additionally, existing 25% tariffs on Canadian and Mexican imports related to drug and crime issues will remain until further notice. The administration's approach has raised concerns about potential retaliatory measures from trading partners.