Oil Industry Pushes Back Against Trump’s Proposed Tariffs on Canadian Exports
The oil industry is sounding the alarm over President-elect Donald Trump’s proposed 25 per cent tariffs on all Canadian exports to the United States, including energy. The move could have significant consequences for U.S. energy security and consumer fuel prices, analysts warn.
Patrick De Haan, an oil market analyst with GasBuddy.com, posted on social media that Canada exports nearly 4.5 million barrels of oil to the U.S. daily. He notes that American refineries, particularly in the Midwest, Great Lakes, and Rocky Mountain regions, are purpose-built to process the heavier and cheaper Canadian crude. Retooling these facilities to accommodate other oil sources could take years and cost billions, he said.
“A 25 per cent tariff on Canadian oil would have huge impacts on gas prices,” De Haan said. “More US supply wouldn’t help.”
The risk of sparking a trade war is also concerning to industry watchers. “Trump is making a miscalculation and now politicians in Canada are gearing up, thinking of how to retaliate on potential tariffs,” said De Haan. “This is not a good road to be going down.”
Trump’s proposal marks a sharp departure from his position during his previous administration, which exempted oil and gas from trade penalties. Industry experts argue the tariffs would immediately jeopardize U.S. energy security by reducing access to a critical supply of feedstock.