Trump's Oil Tariffs Shake Global Markets

President-elect Donald Trump has announced plans to impose a 25% tariff on all imports from Canada and Mexico, including crude oil. The move, set to be part of his executive orders on day one of his presidency, is aimed at pressuring both nations to halt the flow of illegal immigrants and fentanyl into the United States.

Key details of the situation include:

• Major Suppliers:
  Canada and Mexico account for about 25% of U.S. crude oil imports, which are refined into fuels like gasoline and heating oil.

• Import Figures:
  In 2024, the United States imported 5.2 million barrels per day (bpd) of crude oil and petroleum products from these countries, with Canada alone supplying over 4 million bpd.

• Canada's Dependence:

  • 97% of Canadian crude oil exports are sent to the U.S., mostly via pipelines serving Midwest refineries.
  • The expansion of the Trans Mountain pipeline boosted Canadian exports, with a record 4.3 million bpd imported into the U.S. in July 2024.

Economic analysts warn that the tariffs could severely impact Canada’s oil-producing provinces, particularly Alberta, which heavily relies on U.S. demand for its crude exports. At the same time, U.S. refineries could face higher costs, leading to potential disruptions in domestic fuel markets.

This policy announcement has already created ripples in global markets, raising concerns about economic stability in the energy sector.