U.S. Reliance On Canadian Oil Squashes Trump Tariffs

Canada's energy industry does not anticipate that US President-elect Donald Trump’s plans for protectionist trade measures will include tariffs on Canadian oil imports, as many US refineries rely heavily on barrels from Canada, Nia Williams reported for Reuters.

Canada is the world’s fourth-largest oil producer and sixth-largest natural gas (LNG) producer. I Photo: Tourmaline Oil

Some Canadian oil industry participants see Trump’s election as a positive development that could stimulate energy investment across North America, potentially increasing the value of US dollars that Canadian producers receive for their crude.

However, others noted that a rise in US oil and gas production could intensify competition for Canadian exports to global markets.

Canada is the world’s fourth-largest oil producer and sixth-largest natural gas (LNG) producer.

Most of its 4 million barrels per day (bpd) of crude exports go to the US, meaning that any disruption in energy trade could significantly impact Canada’s economy.

Although Trump has suggested a tariff of 10% or more on all imports, most analysts believe Canadian oil is unlikely to be affected, as it is essential to US refineries and not easily replaced by US-produced grades.