Canadian Crude Wins Reprieve From Trump’s Tariffs

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Crude is among the beneficiaries of President Donald Trump’s one-month reprieve on tariffs for some imports from Canada and Mexico, a boost to oil industry leaders initially concerned that it wouldn’t secure relief.

Under orders signed March 6, the tariffs, meant to encourage the countries to combat illegal immigration and fentanyl trafficking, will not apply to goods covered by the North American trade agreement known as USMCA.

Oil covered by the USMCA is exempt, while oil that isn’t USMCA-compliant remains subject to the tariffs, a White House official said.

“We are pleased President Trump delayed the imposition of tariffs on Canadian crude, petrochemicals and refined products, and we are hopeful a permanent agreement can be reached before tariffs ever take effect,” said Chet Thompson, president of the American Fuel and Petrochemical Manufacturers.

“In fact, over 60 percent of U.S. crude oil imports come from Canada—up from less than 5 percent in the early 1980s. In volume terms, Canada sends the U.S. about 4 million barrels a day. That’s almost twice as much crude as it did just 15 years ago and quadruple the amount of 30… https://t.co/sBAog4J7WOpic.twitter.com/KnxUZfNGr8 — Sean Speer (@Sean_Speer) March 7, 2025

Canadian crude is a major ingredient in some U.S. refineries. And some regions of the country are reliant on gasoline and other refined products from Canada.

As of late Thursday, oil industry executives were still sorting through paperwork and certification requirements necessary to ensure relief from the 10% and 25% levies on energy from Canada and Mexico respectively. Trump’s decision also prompted a rush by some energy industry representatives to