US President Donald Trump has set a Feb. 1 deadline for implementing tariffs on oil and gas imports, sending market anxiety surging as energy markets weigh the potential impact of new duties.
The focus on oil comes after Trump said Thursday that “we may or may not” include it in the tariffs, leaving key questions about how new duties would affect energy markets unanswered. The US is Canada’s largest energy importer, with Canadian oil exports worth over $160 billion in 2022.
A disruption in oil flows could destabilize both nations, and experts warn that including oil in tariffs could be “tremendously destabilizing” to the US economy. Trump claims to have more oil than anyone, but many observers disagree, noting that a sudden drop in oil supplies could hit hard due to lighter US production.
The White House Press Secretary declined to offer additional detail on exceptions, stating that Trump is committed to unleashing the “might of our energy industry” and driving down inflation. However, analysts believe that oil and gas products will likely be excluded from widespread tariffs, citing American voter sensitivity to gas prices and the copious energy trade between the US and Canada.
Market experts are watching closely as Trump weighs his options, with West Texas Intermediate falling amid uncertainty to trade below $72 a barrel on Friday. The sector remains in suspense as the world awaits the president’s next move.
Source: https://finance.yahoo.com/news/how-oil-emerged-as-a-central-sticking-point-in-the-trump-tariff-talks-174310146.html