Alberta Prepares for Oil Tariffs as Incoming Trump Administration Maintains Tough Stance
Albertans should brace for tariffs on the province’s oil exports to the United States, Premier Danielle Smith warned following a weekend meeting with U.S. President-elect Donald Trump. Speaking at a Monday morning news conference, Smith said the proposed 25 per cent tariffs on Canadian oil are expected to take effect as early as January 20. The levy will likely increase the purchase cost of Western Canadian Select (WCS) from just over $60 per barrel to nearly $80 for U.S. refineries that rely on the feedstock.
Patrick De Haan, Vice President of Petroleum Analysis for GasBuddy.com, explained that the impact of the tariffs would ripple through the American economy, with gasoline prices in the U.S. Midwest rising by as much as 40 cents per gallon and Great Lakes states seeing an increase of up to 75 cents per gallon. The tariffs will undoubtedly push up consumer costs as refineries pass along the higher purchase price of Alberta oil.
Late last year, De Haan posted on his social media that he believes Trump risks making a miscalculation. Over half of U.S. oil imports come from Canada, with Alberta accounting for the majority of that supply.
Despite Premier Smith’s efforts to discuss alternatives during her meeting with Trump, she indicated there is no sign the incoming administration will change course. “We need to prepare for what’s coming,” she said, urging Albertans to anticipate the impending trade policy.