How Trump’s Canadian Oil Tariff Would Hit U.S. Refineries

Published On Feb 11, 2025, 6:36 AM

A potential 10 percent tariff imposed by President Trump on Canadian oil could lead U.S. refineries to either raise gasoline and diesel prices or reduce production. The BP refinery in Whiting, Indiana, which is heavily reliant on Canadian oil, could face challenges ahead if such tariffs are enacted. The implications of these tariffs may lead to increased consumer prices at the pump, demonstrating the complex interdependencies of U.S.-Canadian oil trade.

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If the tariff is enacted, it could negatively impact U.S. refinery operations, especially those dependent on Canadian crude oil, leading to decreased profitability for these companies. Higher fuel prices at the pump may also affect consumer spending.

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