Trump plans no exemption for oil imports under new tariff plan, sources say
Trump tariff plan won't exempt crude imports despite concerns over price spikes
Canada, Mexico are the top sources of U.S. crude oil imports
USMCA partners supply a quarter of crude refined in the U.S.
Updates throughout
By Jarrett Renshaw
Nov 26 (Reuters) - U.S. President-elect Donald Trump's plan to impose 25% tariffs on Canadian and Mexican imports in his first day in office does not exempt crude oil from the trade penalties, two sources familiar with the plan told Reuters on Tuesday.
Trump on Monday pledged big tariffs on Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal under the U.S.-Mexico-Canada pact.
Trump's tariff threats are broad and include oil imports, the two sources said, both adding that Trump often takes an aggressive posture at the beginning of negotiations.
The U.S. refining industrywas hoping Trump would exempt oil imports over concerns that they would lead to the type of energy price spikes the former president vowed to eliminate when he took the White House.
Canada and Mexico are the top sources of U.S. crude oil imports, together accounting for nearly a quarter of the oil that U.S. refineries process into fuels like gasoline, diesel and heating oil, according to data from the Department of Energy.
Asked about the inclusion of oil imports, the Trump transition team noted that tariffs against China created jobs, spurred investment and resulted in no inflation.
"President Trump will work quickly to fix and restore an economy that puts American workers firstby re-shoring American jobs, lowering inflation, raising real wages, lowering taxes, cutting regulations, and unshackling American energy," said Trump transition spokeswoman Karoline Leavitt.
Reporting By Jarrett Renshaw
Editing by Chris Reese and Marguerita Choy
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
