U.S. President Donald Trump announced on Friday that his administration plans to impose tariffs on oil and gas imports by February 18, with a potential reduction in the levy for Canadian crude. While Trump did not specify which countries would be targeted, he suggested that the tariff on Canadian oil might be set at 10%, down from the previously mentioned 25%.
The U.S. imports approximately 4 million barrels of oil per day from Canada, with about 70% refined in the Midwest. Analysts and industry leaders have warned that tariffs on imported oil could disrupt supply chains, lower fuel production, and drive up consumer prices. Many U.S. refiners, including Valero and Phillips 66, depend on heavier crude grades from Canada and Mexico, which their facilities are designed to process.
Phillips 66 has indicated that the tariffs could initially divert Canadian oil away from the U.S. market, while Valero, the country’s second-largest refiner, has been preparing contingency plans. HF Sinclair and Par Pacific Holdings, which also have significant exposure to Canadian crude, are closely monitoring developments.
Industry experts are awaiting further details on Trump’s tariff strategy, particularly its impact on U.S. refining operations and fuel prices.