Who gets stuck with the bill for tariffs on imported Canadian oil?
Published On Feb 27, 2025, 8:01 AM
A proposed 10% tariff on imported Canadian oil by the Trump administration could impose financial burdens on U.S. refiners, Canadian oil producers, and American consumers. The impact would predominantly be felt by U.S. refiners and consumers who would face increased costs at the gas pump as U.S. supply will still rely on Canadian crude, which is essential for maintaining refinery operations. The relationship between U.S. refiners and Canadian producers is tight, with about 70% of Canadian crude going to the U.S. and a significant portion of U.S. crude imports coming from Canada.
Stock Forecasts
XLE
Positive
The increased tariff on Canadian oil is likely to lead to higher crude oil prices in the U.S. market, which may translate into higher prices for consumers at the pump. U.S. refiners will face pressure to either absorb the extra costs or pass them onto customers, potentially causing margins to narrow. If the tariffs extend into operational costs significantly, U.S. oil and gas companies could be adversely affected, which may lead to volatility in their stock prices.
Related News
Investors aren't just buying US stocks anymore: Morning Brief
Feb 19, 2025, 6:00 AM
The mood has shifted sharply from last year's overwhelming bullishness for American stock performance.
Right-Wing Media Praises U.S.-Russia Talks as ‘Breath of Fresh Air’
Feb 18, 2025, 8:35 PM
Many of President Trump’s media allies were quick to celebrate this week’s negotiations, a contrast to the deep unease expressed by the foreign policy establishment.
Energy bills forecast to rise by £85 a year
Feb 18, 2025, 7:40 AM
Cornwall Insight predicts that the energy regulator will hike gas and electricity prices by 5%.