"Some oil refineries will probably struggle to replace imported crude oil if President Trump imposes 25 percent tariffs on products from Canada and Mexico."
"Oil and gas companies in the United States are bracing for the possibility that President Trump will thrust their businesses into disarray and will drive up prices at the pump by imposing 25 percent tariffs on goods from Canada and Mexico.
The United States is the world’s largest oil producer, but the country’s refineries are designed to turn a mix of different types of oil into fuels like gasoline and diesel. Roughly 60 percent of the crude oil that the United States imports comes from Canada, and about 7 percent comes from Mexico. Many refineries are set up to use those particular imports and cannot easily switch to oil from other places.
Analysts are not sure just how Mr. Trump’s tariffs might ripple through the oil market — and who would bear the added expenses. The costs may not be significant if the tariffs are in place only temporarily, or if the administration makes it easy for refiners to obtain waivers to keep buying Canadian or Mexican crude without paying extra."
Rebecca F. Elliott reports for the New York Times January 31, 2025.
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