American Gas Association reacts to Trump announcement of energy tariffs on Canada, Mexico
Published On Feb 2, 2025, 7:09 AM
The American Gas Association (AGA) has expressed concern regarding President Trump's recent announcement of energy tariffs on imports from Canada and Mexico, stating that 9% of U.S. natural gas comes from Canada. AGA President Karen Harbert highlighted the importance of working with the administration to alleviate potential rising costs that these tariffs might impose on home heating and business expenses. Trump has set a 25% tariff on general imports from both countries and a 10% tariff on energy imports specifically from Canada. In retaliation, Canada has announced its own tariffs on U.S. goods, which could further complicate cross-border trade, affecting the energy sector significantly.
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The announcement of energy tariffs, particularly a 10% tariff on Canadian natural gas, can lead to increased costs for U.S. energy companies that rely on imports. It may affect the pricing structure of energy utilities, impacting their overall margins. However, the move intends to bolster U.S. energy security by promoting domestic production. The AGA's proactive approach to mitigate potential impacts suggests that while there may be short-term disruptions, the sector might stabilize in response. Investors should consider companies that are resilient to these changes or can quickly adjust their supply chains.
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