5 ways the Trump tariffs will hit US energy

By Hannah Northey | 02/03/2025 01:59 PM EST

Analysts cast the tariffs on Canada and Mexico as the opening salvos in a trade war that could soon spread across the American energy sector.

National flags representing the United States, Canada, and Mexico fly in the breeze in New Orleans.

National flags representing the United States, Canada, and Mexico fly in the breeze in New Orleans where leaders of the North American Free Trade Agreement met on April 21, 2008. Judi Bottoni/AP

The U.S. energy sector is girding for a major shakeup just hours before President Donald Trump’s steep tariffs on China and Canada take effect.

The president signed executive orders Saturday that would slap 25 percent tariffs on all goods imported from Canada and Mexico, including steel and aluminum. A 10 percent tariff is being imposed on Canadian energy — including oil and gas, hydropower, critical minerals, uranium, and coal. Chinese goods coming will be hit with a 10 percent duty, per Trump’s order.

The tariffs are slated to take effect at 12:01 a.m. EST Tuesday.

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But the policy is in flux. On Monday, the president confirmed on Truth Social that tariffs on Mexico will be paused for a month following Mexican President Claudia Sheinbaum’s vow to send 10,000 Mexican soldiers to the U.S.-Mexico border.

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