The 25% import levy could go into place as soon as Feb. 1.

Canada is a main source of crude oil imports and industrial supplies like steel for the United States. More than 71% of U.S. crude oil imports were supplied by Canada and Mexico in 2023, according to a new report from the Congressional Budget Office (CBO). Of that share, 60% of oil came from Canada.

President Donald Trump's threats to impose punishing tariffs on Canada and Mexico may be part of a strategy to gain leverage ahead of new negotiations on a regional trade agreement, experts said.