Investing.com — Goldman Sachs has warned of “significant consequences” for US consumers if President-elect Donald Trump moves forward with proposed tariffs on imports from Canada, casting doubt on whether the plan will ultimately be implemented.
Reuters reported on Tuesday that Trump’s proposed 25% tariff on Canadian and Mexican imports would include , a key resource for US refineries. The oil industry has raised concerns that such a policy could harm consumers, the energy sector, and even national security.
Canada and Mexico together supply approximately 25% of the crude oil refined in the United States, which is turned into products such as gasoline and , according to data from the US Department of Energy.
Many US refineries are configured specifically to process crude from these two countries, leading industry experts to hope that oil might be excluded from any protectionist trade measures.
However, according to Reuters, citing sources familiar with the matter, oil would not be exempt from the tariffs.
Daan Struyven, head of commodities research at Goldman Sachs, noted that a 25% tariff on Canadian imports would likely drive up fuel prices in the US.
Tariffs “could in…
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