US President Donald Trump’s new tariff package includes an exemption for the energy sector, sparking criticism that he is favoring big oil donors over American people. The 10% universal tariffs, which are higher in many major economies, will not apply to liquefied natural gas imports, crude oil from Canada, and petrochemical materials.
The decision was welcomed by the American Petroleum Institute, with its head Mike Sommers stating that it “underscores the complexity of integrated global energy markets”. The exemption comes after fossil fuel industry contributions to Trump’s re-election campaign, totaling $96m. Environmental advocates argue this deal has given oil billionaires an advantage over ordinary Americans.
Trump’s administration has maintained close ties with the energy sector since taking office. Last month, he met with oil executives and floated an energy exemption from his tariff package. While the tariffs won’t directly affect many oil products, they could increase production costs due to levies on steel and aluminum.
Economist Claudio Galimberti warns that there will be “immediate and severe consequences” from the tariffs. Trump has repeatedly promised to lower prices for Americans but his new policy could fuel price increases instead. Green advocacy group Climate Power’s Pete Jones calls this a promise broken, as ordinary Americans are set to pay more while oil billionaires gain an advantage.
Source: https://www.theguardian.com/us-news/2025/apr/04/trump-exempts-big-oil-donors-from-tariffs