Crude oil futures saw an upward trend on Friday morning as US President Donald Trump reiterated plans to impose tariffs on Canada and Mexico starting February 1.
As of 9.57 am, April Brent oil futures were trading at $76.37, up 0.63%, while March crude oil futures on WTI stood at $73.39, up 0.91%. On the Multi Commodity Exchange (MCX), February crude oil futures were trading at ₹6367, a 0.76% increase from the previous close, while March futures were at ₹6330, up by 0.59%.
Trump had previously threatened to impose 25% tariffs on Canada and Mexico in a bid to address issues related to immigration and drug influx. He reaffirmed these plans on Thursday, but is yet to decide on exempting crude oil imports from the tariff. He mentioned that a decision on this matter will come soon.
Data from the US EIA shows that Canada exported 3.9 million barrels of crude oil to the US in 2023, with Mexico exporting 733,000 barrels per day. Trump also mentioned considering tariffs on China, a key player in the global crude oil market.
In a recent post on ‘Truth Social,’ Trump warned BRICS nations of 100% tariffs if they attempt to establish a BRICS currency. He asserted that the US Dollar will remain dominant in international trade.
On the commodities market, February aluminium futures were trading at ₹251.55 on MCX, while February kapas contracts on NCDEX showed an uptick. Additionally, April turmeric futures on NCDEX saw a slight decrease.
The overall market sentiment remains influenced by Trump’s trade policies and their potential impact on the global economy.
