Trump's Tariff Shake-Up: The Oil and Gas Impact

President Trump anticipates imposing tariffs on oil and gas imports around February 18, potentially reducing planned levies on Canadian crude. The move could impact fuel production costs as many U.S. refiners rely on imported crude, particularly from Canada, to run their facilities effectively.

In a significant announcement, U.S. President Donald Trump revealed plans on Friday to implement tariffs on oil and gas imports by February 18. This decision may include a reduction in the proposed levy on Canadian crude, aiming to bring it down to 10% from the previously mentioned 25%.

The United States imports approximately 4 million barrels of oil daily from Canada, with the majority processed by refineries in the Midwest. Analysts warn that the introduction of tariffs on oil imports could raise fuel production costs due to the reliance on heavier crude grades from Mexico and Canada.

Phillips 66, Valero, and other major refiners are working diligently to prepare for the impact of potential tariffs. The move has caused industry-wide anticipation, as these companies rely heavily on Canadian crude for their Midwest operations and are evaluating various response scenarios.

(With inputs from agencies.)