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Oil prices drop as Trump delays tariffs on Mexico, Canada

Onwubuke Melvin
Onwubuke Melvin

United States West Texas Intermediate crude prices dropped by 1.1%, or $0.81, to $72.35 per barrel late Monday.

The decline came after the leaders of Mexico and Canada announced that U.S. President Donald Trump had agreed to delay imposing heavy tariffs for one month.

Meanwhile, the tariffs on China are still set to take effect at 12:01 a.m. on Tuesday.

Prices had initially surged by over $1 per barrel as concerns over U.S. imports from two major crude suppliers weighed on the market.

However, the rally was short-lived after Trump agreed to delay new tariffs on Mexico for one month.

This decision came after Mexico pledged to enhance security along its northern border to curb the flow of illegal drugs, particularly fentanyl.

Brent crude futures for April delivery gained 29 cents, or 0.4%, from Friday’s close, settling at $75.96 per barrel.

That marked the lowest close for Brent since January 2, with the lower-priced April contract now taking over as the front-month following the expiration of the higher-priced March future on Friday.

Trump’s wide-ranging tariffs on goods from Mexico, Canada, and China, set to take effect on Tuesday, raised concerns about sparking a trade war that could hinder global growth and fuel inflation once again.


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