News Brief

January 29, 2025

Trump’s 25% tariffs on Canadian crude oil would take effect Saturday

President Donald Trump is going ahead with plans to issue tariffs on Canada and Mexico starting Feb. 1.

The tariffs of 25 percent would affect fuel prices in the U.S., where 60 percent of imported oil comes from Canada, mostly Alberta. Refineries in the U.S. Midwest are geared to process the heavy-sulfur crude oil from across the northern border, known as Western Canadian Select.

Analysts have said tariffs on Canadian oil will raise fuel prices for U.S. consumers. Patrick De Haan, head of petroleum analysis at GasBuddy, said on X (formerly Twitter) that the impact on gasoline prices would be most severe in the Midwest and Rocky Mountain states, ranging from 15 cents per gallon to 75 cents per gallons.

Trump has threatened to impose the tariffs unless Mexico and Canada act more aggressively to stop fentanyl from flowing across borders into the U.S. On Wednesday, Howard Lutnick, Trump’s nominee for Commerce Secretary, told U.S. senators the tariffs are about “reciprocity” and “respect.”

Trump’s threats have caused confusion even among U.S Republicans, who reportedly told Canadian ministers they “don’t really understand why [Trump is] targeting Canada,” Canadian Labour Minister Steve MacKinnon told the Canadian Broadcasting Corporation.  

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