09:27 AM EST, 01/21/2025 (MT Newswires) -- Oil prices weakened early on Tuesday as Donald Trump declared a national energy emergency on the first day of his return to the U.S. presidency and postponed to Feb. 1 plans to immediately impose a 25% tariff on imports from Canada, which supplies 60% of U.S. oil imports.

West Texas Intermediate crude oil for February delivery was last seen down US$1.98 to US$75.90 per barrel, while March Brent crude dropped US$1.31 to US$78.84.

The drop comes even as Trump signed a flurry of executive orders and promises to support the U.S. oil industry, including measures to boost output from Alaska, refill the strategic petroleum reserve and end subsidies for electric vehicles.

However the new president on Monday deferred a promise to immediately impose a 25% tariff on imports from Canada and Mexico, instead directing federal agencies to evaluate unfair trade practices from Canada, Mexico and China. However Trump later told reporters the 25% tariffs on Canada and Mexico will be imposed on Feb.1, which could raise U.S oil prices, contrary to his pledge to lower energy costs.

"US President-elect Donald Trump's pledge to impose a sweeping 25% tariff on all imported goods from Mexico and Canada-including crude oil and natural gas-is not a zero-probability event and is one that Canada's policymakers and producers alike should take seriously. That said, Trump's vocal support for reviving Keystone XL and vow to keep a lid on gasoline prices are so incongruent with the tariff drumbeat that a new bilateral trade deal may not be too distant," Greg Pardy, head of global energy research at RBC Capital Markets. noted.