The oil industry is strongly advocating for President Donald Trump to exempt oil and natural gas from potential tariffs on Canada and Mexico, two significant sources of foreign crude. Industry sources revealed that discussions with the Trump administration have been dynamic and intense.
President Trump hinted that oil might be excluded from the proposed tariffs of 25% on Canada and Mexico set for February 1. He emphasized that oil trade should not be disrupted, stating, 'Oil will have nothing to do with it, as far as I’m concerned,' and assured that a final decision would be made promptly.
Canada stands as the largest foreign oil supplier to the United States, with approximately 4 million barrels of Canadian oil entering the country daily, surpassing US oil imports from all OPEC nations combined. If Canada were a US state, it would rank as the second-largest oil producer, trailing only Texas.
The oil industry is emphasizing the importance of maintaining the current trade dynamics with Canada and Mexico, highlighting the benefits it brings to the American economy. They are urging the administration not to disrupt this trade relationship by imposing tariffs that could potentially harm the industry and the overall economy.
As the discussions continue, the White House has yet to provide a formal response regarding the potential exemption of oil and gas from the proposed tariffs. The industry remains hopeful that a decision favorable to their interests will be reached soon.
