US power lobbying teams cautious about Trump tariffs risk

PITTSBURGH (Reuters) – U.S. oil and fuel lobbying teams mentioned on Tuesday they have been cautious of President-elect Donald Trump’s risk of tariffs on Canada and Mexico, saying such insurance policies might have an effect on shoppers, trade and safety.

Trump, who takes workplace on Jan. 20, vowed to impose a 25% tariff on imports from Canada and Mexico, two of America’s greatest buying and selling companions, till they clamped down on medication, significantly fentanyl, and migrants crossing the border, in a transfer that would seem to violate a free-trade deal.

Drilling and refining trade lobbying teams warned there may very well be large impacts.

“Throughout-the-board commerce insurance policies that would inflate the price of imports, scale back accessible provides of oil feedstocks and merchandise, or provoke retaliatory tariffs have potential to affect shoppers and undercut our benefit because the world’s main maker of liquid fuels,” mentioned a spokesperson for the American Gas and Petrochemical Producers group.

The AFPM mentioned its industries would “proceed urging officers to veer away from any insurance policies that would disrupt America’s power benefit.”

The American Petroleum Institute mentioned in response to a query concerning the threatened tariffs that maintaining the commerce of power throughout borders is essential. Canada, the highest provider of oil to the US, despatched almost 4 million barrels per day of crude to the US final yr.

“Canada and Mexico are our prime power buying and selling companions, and sustaining the free move of power merchandise throughout our borders is essential for North American power safety and U.S. shoppers,” mentioned API spokesperson Scott Lauermann.