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.

U.S. stock-index futures opened sharply lower and oil prices jumped Sunday night and investors braced for volatility across financial markets after President Donald Trump over the weekend announced heavy tariffs on imports from Canada,

The new tariffs imposed by U.S. President Donald Trump on imports from Canada, Mexico, and China are likely to have a limited near-term impact on global oil and gas prices, Goldman Sachs said in a note on Sunday.

The American oil benchmark outpaced gains in the global marker after President Donald Trump announced tariffs that will limit supplies from the US’s two biggest foreign suppliers of crude.

Oil prices are likely to fall in the longer run after the initial jump following Donald Trump's implementation of hefty tariffs, said industry watchers.

The dollar surged on Monday, pushing its Canadian counterpart and Mexican peso to multi-year lows while China's yuan slumped to a record trough in offshore trade after U.S. President Donald Trump's sweeping tariffs kicked off a trade war.

The invoking of national security to unravel trade agreements could scramble the international trading system in China’s favor.