Tariffs on Canada and Mexico could hurt Trump’s quest for US energy dominance
Summary
Tariffs on imports from Canada and Mexico could significantly undermine U.S. energy dominance by raising domestic energy prices and disrupting critical supply chains. These actions may drive U.S. trading partners to seek alternatives, diminishing American competitiveness in energy exports, per commentary from Atlantic Council.
Tariffs on imports from Canada and Mexico could significantly undermine U.S. energy dominance by raising domestic energy prices and disrupting critical supply chains. These actions may drive U.S. trading partners to seek alternatives, diminishing American competitiveness in energy exports, per commentary from Atlantic Council.
The issue:
Tariffs on energy imports present a critical challenge for U.S. energy markets, particularly as Canada accounts for about 62% of U.S. crude oil imports, followed by Mexico at approximately 7%. Such tariffs could lead to higher domestic energy costs and retaliatory actions from trading partners.
Go deeper:
With U.S. refineries largely dependent on imported heavy crude, tariffs could spike consumer prices, especially in Midwest states lacking alternative supply options. Additionally, retaliatory tariffs in agricultural products from Mexico could severely impact U.S. natural gas exports, destabilizing domestic prices. The commentary warns that these trade barriers may inadvertently strengthen competitors like China in the energy market.
This is a brief overview of a commentary from Atlantic Council. For complete insights, we recommend reading the full commentary.