Energy Experts Predict Donald Trump Will Grant Tariff Exemptions for Canadian Oil
Experts predict that President-elect Donald Trump’s proposed 10 percent tariff on all imports, including from Canada, is unlikely to affect Canadian oil.
The potential tariff has raised concerns in Canada, with the Canadian Chamber of Commerce warning of a $30-billion impact on the economy.
Rory Johnston, a Toronto-based oil market researcher, believes there is a small chance the tariff will target Canadian oil, but the consequences could be severe.
Michael Catanzaro, a former Trump energy adviser, expressed optimism about maintaining strong energy ties with Canada during a forum in Washington, D.C.
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More than 77 percent of Canadian exports go to the U.S., with trade contributing significantly to Canada’s GDP, notably in the oil and gas sectors.
Canada is a major supplier of U.S. energy imports, particularly crude oil, flowing mostly through pipelines to the Midwest.
Experts predict that without exemptions for Canadian oil, fuel prices in the U.S. would rise, something Trump is unlikely to support.
However, there is a possibility that Canadian exports could benefit if tariffs are imposed on other oil imports, excluding Canada.
Nevertheless, the strained relationship between Prime Minister Justin Trudeau and Trump poses challenges, particularly in areas of climate action and renewable energy.
The future of Canada-U.S. relations remains uncertain, with potential tariff negotiations looming in the aftermath of the Canada-U.S.-Mexico Agreement.
