Oil prices rise on the first day of trade after the US imposed tariffs on Canada and Mexico, with analysts divided on the long-term impact.

Oil surged as President Donald Trump placed hefty tariffs on a range of imports including crude from Canada and Mexico, threatening higher costs for consumers. Most Read from BloombergWhen French Comm

Tariffs on oil imports mean higher costs for making finished fuels like gasoline, much of which is likely to be passed along to U.S. consumers.

"Despite the 'energy emergency' claims, the US is producing energy in record quantities," JPMorgan Asset Management wrote.

US oil refiners will look to Latin America and the Middle East to replace suddenly more expensive Canadian and Mexican crudes following President Donald Trump’s tariff salvo, according to traders.

Oil prices jumped on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of crude supply disruption from the two biggest suppliers to the U.S., but the prospect of lower fuel demand capped gains.