Oil retreated as traders weighed the potential fallout from Donald Trump’s plan for tariffs on major US crude supplier Canada and other countries, as well as the outlook for stockpiles. Brent (BZ=F, BZT=F) retreated below $77 a barrel. White House press secretary Karoline Leavitt reiterated that levies on Canada, Mexico and China will start as soon as Feb. 1. More than half of US crude imports come from its northern neighbor and Canadian prices have weakened as a result of the threat.

Stockpiles were also in focus. US commercial inventories increased by 2.86 million barrels last week, according to people familiar with the American Petroleum Institute’s assessment. That would be the first gain in 10 weeks if confirmed by official data later Wednesday.

Crude has had a bumpy start to the year as US sanctions against Russia and cold weather initially ratcheted prices higher. Concerns with the possible impact on energy demand from a trade war triggered by Trump, plus poor economic data from China, then pulled them back.

Aside from touting his package of tariffs, the US president has also been calling on OPEC+ to help lower crude prices, in part as he looks to pressure Moscow to end the Ukraine war.

“Crude prices keep dancing to the rhythm of Trump’s tariff orchestra, with Canada tariffs in focus as they go into effect on Saturday,” said Ole Hansen, head of commodities strategy at Saxo Bank. Wednesday’s price decline represents “a sour sentiment across an overall rangebound market,” he added.