The US heavily relies on Canadian oil imports, but President-elect Trump's threatened tariffs could disrupt this relationship and increase energy costs.
The U.S. increasingly relies on Canadian crude oil to meet domestic demand and that relationship faces potential strain amid the threat of tariffs from President-elect Donald Trump . More than 50% of crude oil imported to the U.S. comes from Canada , up from 33% in 2013. The increase follows a jump in production from Canada ’s western provinces and growing pipeline capacity to its southern neighbor. Another roughly 10% of imports come from Mexico.
Trump has threatened blanket tariffs of up to 25% on products from both Canada and Mexico. That has raised concerns about higher energy costs trickling through the entire U.S. economy, making gasoline and other petroleum products more expensive and reigniting inflation. “All three countries remain heavily reliant on each other economically, and hefty taxes on key U.S. imports like crude oil or softwood lumber risk exacerbating U.S. consumer inflation,” said a report led by Solita Marcelli, chief investment officer of the Americas for UBS Financial Services. Canadian officials say they’re studying how they would respond if Trump follows through on his threat. The leader of Ontario, Canada’s most populous province, has suggested barring imports of American-made alcohol and restricting energy exports. But the head of oil-rich Alberta has ruled out cutting off oil exports and hopes to find a solution.Canadian oil makes up the majority of overall oil imports in the U.S., despite the nation’s own oil boom over the last decade. That boom has made the U.S. the world’s biggest producer of crude oil and a net exporter. But a mix of chemistry and infrastructure, along with geography and prices, means the U.S. still has to import a significant amount of oil to meet demand
CANADA OIL TARIFFS TRUMP ENERGY
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