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West Texas Intermediate (WTI) crude prices dropped 1.1% to $72.36 per barrel after U.S. President Donald Trump announced a one-month delay on steep tariffs for Mexico and Canada. The move, aimed at strengthening border enforcement, came after negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
The 25% tariffs, set to take effect on Tuesday, will now be postponed for 30 days. In return, Canada and Mexico agreed to tighten measures against illegal immigration and drug smuggling, addressing Trump’s key concerns.
Both countries are the largest oil suppliers to the U.S., which remains the world's top crude producer. The tariff delay eased immediate trade tensions, impacting oil prices. However, uncertainty remains as U.S. tariffs on China are still scheduled to take effect within hours.
Crude markets reacted to the news, reflecting investor caution over global trade policy shifts. The temporary relief for North American trade partners provided short-term stability, but long-term concerns persist regarding U.S. trade relations and
