(Investing) – PITTSBURGH – U.S. oil and gas lobbying groups said on Tuesday they were wary of President-elect Donald Trump’s threat of tariffs on Canada and Mexico, saying such policies could affect consumers, industry and security.
Trump, who takes office on Jan. 20, vowed to impose a 25% tariff on imports from Canada and Mexico, two of America’s biggest trading partners, until they clamped down on drugs, particularly fentanyl, and migrants crossing the border, in a move that would appear to violate a free-trade deal.
Drilling and refining industry lobbying groups warned there could be big impacts.
“Across-the-board trade policies that could inflate the cost of imports, reduce accessible supplies of oil feedstocks and products, or provoke retaliatory tariffs have potential to impact consumers and undercut our advantage as the world’s leading maker of liquid fuels,” said a spokesperson for the American Fuel and Petrochemical Manufacturers group.
The AFPM said its industries would “continue urging officials to veer clear of any policies that could disrupt America’s energy advantage.”
The American Petroleum Institute said in response to a question about the threatened tariffs that keeping up the trade of energy across borders is key. Canada, the top supplier of oil to the United States, sent nearly 4 million barrels per day of crude to the United States last year.
“Canada and Mexico are our top energy trading partners, and maintaining the free flow of energy products across our borders is critical for North American energy security and U.S. consumers,” said API spokesperson Scott Lauermann.
