Trump tariffs could raise gasoline prices, oil industry warns

By Carlos Anchondo | 02/03/2025 06:57 AM EST

Many U.S. refineries rely on Canadian crude, which will be hit with a new 10 percent tariff starting Tuesday.

Workers walk by crude oil tanks at Cenovus' Sunrise oil facility.

Workers walk by crude oil tanks at Cenovus' Sunrise oil facility northeast of Fort McMurray in Alberta on Aug. 31, 2023. Victor R. Caivano/AP

The U.S. oil and gas industry is nervous about President Donald Trump’s decision to impose tariffs on Canadian energy products.

Trump signed an executive order Saturday that adds a 10 percent tariff on oil, natural gas, coal, uranium and other energy resources from Canada. Other imports from Canada and Mexico will be subject to a 25 percent tariff, while imports from China will get a new 10 percent tariff.

Trump took to Truth Social on Sunday to argue that the United States has “unlimited Energy” and doesn’t need “anything” from Canada. But Canada provided roughly 60 percent of U.S. crude imports in 2023 — much of which is funneled to Midwestern refineries, which are specifically configured to process that kind of oil. Another 11 percent of U.S. crude imports come from Mexico.

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The American Petroleum Institute had urged Trump to exclude crude oil from the tariffs, as analysts say the move could raise prices at the pump. On Saturday, the group emphasized that U.S. refineries “rely on Canadian crude to produce the gasoline, diesel and jet fuel that’s critical for transportation, agriculture and American consumers.”

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