Trump's Tariff Plan Risks Shaking U.S. Energy Security

Donald Trump plans to impose a 25% import tariff on Canadian and Mexican crude oil, potentially affecting U.S. consumers and oil refineries. Industry experts warn that such tariffs could raise oil prices and harm North American energy security by disrupting supply chains from leading partners Canada and Mexico.

President-elect Donald Trump intends to include crude oil in his proposed 25% import tariffs on Canada and Mexico. This move has sparked concern within the oil industry, warned it could negatively impact consumers, industry players, and national security.

Canada and Mexico are the U.S.'s top crude suppliers, collectively providing about a quarter of U.S. oil imports. Many refineries in the U.S. are specifically designed to process oil from these countries. However, recent insights suggest oil will not be exempt from Trump's protective trade measures, causing unease among industry leaders.

Oil trade associations like the American Fuel and Petrochemical Manufacturers and the American Petroleum Institute are against the tariffs, as they foresee increased costs and disrupted energy security. Analysts predict these tariffs could drive up fuel prices for U.S. refiners due to the reliance on Canadian and Mexican oil sources.

(With inputs from agencies.)