Trump's Tariffs a Boost for European and Asian Refiners

U.S. President Donald Trump's trade tariffs on Canadian and Mexican oil imports will offer European and Asian refineries a competitive advantage against their U.S. rivals, analysts and market participants told Reuters.

Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday to address a national emergency over fentanyl and illegal aliens entering the U.S., White House officials said. Energy products from Canada will have only a 10% duty, but Mexican energy imports will be charged the full 25%, they said.

CANADIAN INDUSTRY RESPONSE

Lisa Baiton, Canadian Association of Petroleum Producers (CAPP) president and CEO, has responded to the tariffs saying: “We are deeply disappointed that U.S. President Trump has decided to institute tariffs on Canadian goods. Nobody wins with the introduction of tariffs on Canadian energy. These tariffs undermine our mutually beneficial relationship and are likely to increase costs and inflation for American consumers while damaging the economies of both countries.

“With the complexity of North American and global oil and natural markets, it is difficult to predict how the application of a 10% tariff on Canadian oil and gas will impact supply, demand and trade patterns. What we do