US-Canada Oil Trade Under Tariff Threat

The US increasingly depends on Canadian crude oil, which makes up over 50% of its imports, facing possible disruption due to tariff threats from President-elect Donald Trump. Concerns abound over potential hikes in energy costs boosting inflation, with Canada considering retaliatory measures against American products.

The reliance of the United States on Canadian crude oil imports, now exceeding 50% of total imports, risks potential upheaval amid President-elect Donald Trump's proposed tariff threats.

Concerns arise as tariffs up to 25% on Canadian and Mexican products could escalate US energy costs. The interconnected economies of the North American countries may lead to heightened consumer inflation if crude oil imports are taxed.

Canadian officials are considering retaliation if the tariffs proceed, yet remain hopeful for a negotiated resolution. This potential trade disruption underscores the complex dynamics of cross-border energy reliance and policy decisions.

(With inputs from agencies.)