President Trump has threatened to impose tariffs on Canada over drug trafficking, equating it with Mexico. U.S. government reports do not support the claim.

The U.S. government has stated that Canada and Mexico could still avoid hefty tariffs if they take action to curb fentanyl trafficking at their borders while also committing to slowing China’s advancements in artificial intelligence.

The remarks come amid ongoing discussions between the Trump administration and Mexican and Canadian officials.

Oil prices were little changed on Thursday as investors focused on tariffs threatened by U.S. President Donald Trump on Mexico and Canada, the two largest suppliers of crude to the United States. Brent crude futures were down 10 cents at $76.

President Donald Trump said he would follow through on his threat to impose 25% tariffs on imports from Canada and Mexico on Feb. 1, citing the flow of fentanyl and large trade deficits as among the reasons for his decision.