Proposed Tariffs Stir Concern
President-elect Donald Trump announced that he plans to impose 25% tariffs on all imports from Canada and Mexico. “The proposed tariffs have raised questions about potential impacts on U.S. energy markets, particularly after Reuters confirmed the tariffs would apply to crude oil and petroleum products with no planned exceptions,” reported NEFI Energy Online News (NEON).
Canada supplies more than 60% of U.S. crude oil imports, averaging four million barrels per day, according to the U.S. Energy Information Administration. It is also responsible for about 25% of U.S. refined petroleum product imports, including home heating oil, diesel fuel, gasoline, and propane utilized in the Northeast, according to NEON, the newsletter for NEFI members.
The American Petroleum Institute and American Fuel & Petrochemical Manufacturers suggested that petroleum products be excluded from the tariff plan. “While this situation bears watching, it’s important to remember that there are many steps between a proposed policy and its implementation,” NEFI President and CEO Jim Collura said in the newsletter. NEFI will monitor the issue and advocate for policies that ensure that its fuel marketer members “continue to have access to stable and affordable fuel supplies,” Collura said.
