US energy lobby groups cautious about Trump tariffs

The U.S. oil industry said that they are concerned about President-elect Donald Trump’s threats to impose tariffs on Canada, Mexico and the United States, stating that such policies may affect consumers, industries and security.

Trump, who will take office on January 20, has promised to impose a tariff of 25% on imports coming from Canada and Mexico. These are two of America's largest trading partners. He said he would do this until these countries crack down on drugs - particularly fentanyl - and migrants at the border. This move appears to be in violation with a free trade agreement.

Lobby groups for the drilling and refining industries warned that there could be major impacts.

The American Fuel and Petrochemical Manufacturers Group said that "trade policies across the board which could increase the price of imports, reduce the availability of oil feedstocks and product, or trigger retaliatory duties have the potential to impact the consumers and undermine our advantage as the leading liquid fuel producer in the world."

The AFPM stated that its member industries will "continue to urge officials to avoid any policies which could disrupt America's advantage in energy."

In response to a query about threatened tariffs, the American Petroleum Institute stated that it is important to keep the energy trade across borders going. Canada, which is the largest oil supplier to the United States sent almost 4 million barrels of crude per day to the United States in the past year.

API spokesperson Scott Lauermann said, "Canada and Mexico represent our largest energy trading partners. Maintaining the free flow across our border is crucial for North American energy and U.S. consumer security." (Reporting and editing by Jonathan Oatis; Timothy Gardner)

(source: Reuters)