Trump: "Tariffs Will Be Imposed If Low Oil Prices Threaten Jobs"

[Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] U.S. President Donald Trump announced on the 4th (local time) that he would take measures such as imposing tariffs on crude oil imports to protect the domestic energy industry, which is facing a crisis due to the plunge in oil prices, according to major foreign media reports.

At a regular briefing that day, President Trump said regarding the recent drop in oil prices, "It will threaten countless American jobs," adding, "If we need to do anything to protect tens of thousands of energy industry workers and the great companies that create those jobs, we will do whatever it takes."

After a meeting with executives from the U.S. energy industry the previous day, he said, "At this time, I am not thinking of imposing tariffs," but left the possibility open by saying it is a "tool that can be used."

International oil prices have been repeatedly plunging and surging due to the 'oil price war' between Russia and Saudi Arabia, who competitively lowered prices amid a sharp drop in oil demand caused by the COVID-19 pandemic.

The U.S. is currently discussing crude oil production cuts of about 10 million barrels per day, roughly 10% of the world's daily oil demand, with the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia and allied oil-producing countries.