2/2/2025–|Last update: 2/2/202506:29 PM (Mecca time)
The customs duties imposed by US President Donald Trump threaten imports from Canada and Mexico by confusing the oil market very bonding in North America and raising gasoline prices to Americans, Bloomberg reported in a report.
On Saturday, Trump signed orders to impose a 10% customs tariff on Canadian energy imports, in addition to public fees by 25% on Canada, Mexico and 10% on China, with these fees entering into force next Tuesday.
Canada oil exports
The customs duties imposed on Canada and Mexico may reduce shipments from the largest foreign crude oil suppliers to the United States, and all Canada exports of crude oil, which amount to about 4 million barrels per day, flow to its southern neighbor, and about 500 thousand barrels come to the United States from Mexico .
In the Middle West, USA, which includes 23% of American refining energy, refineries relied heavily on Canadian supplies, making fuel producers a little alternatives.
“The customs definitions of Canadian oil would risk risking unimaginable, albeit, in the prices of gasoline in the Middle West,” said analysts at the Goldman Sachs Group, including Samantha Dart and Dan Strewvin, in a recent memo.
White House officials said that Canada’s energy imports were affected by the lesser average (10%) to reduce the upward pressure on gasoline prices and household heating fuel.
Canada responds to the imposition of anti -import fees from the United States by 25%, at a value of 155 billion Canadian dollars ($ 107 billion).
Canadian Prime Minister Justin Trudeau did not rule out, at a press conference, specifically measures such as tax imposition or energy exports to the United States, but he said that no sector or region should bear an unjustified burden from Canada’s response.
https://www.youtube.com/watch?v=aym4vj3wgwg
Employment of profits
And fuel production companies warned, last week, that the fees would lead to the erosion of refining profits and the fluctuation of oil markets, and executive officials at Valro said last Thursday that American factories may reduce refining prices in response to this, while Philips warned 66 of Canadian crude prices will collapse.
“We hope that a quick solution will be reached with our neighbors in North America, so that crude oil, refined products and petrochemical are excluded from the definitions schedule before the effect reaches the consumers,” said Chit Thompson in a statement carried by Bloomberg.
The American Petroleum Institute said, in a statement, that it will continue to work with the Trump administration to fully follow “that protects consumers’ ability to withstand energy costs, expand the country’s energy advantage and support US jobs.”
According to Bloomberg, the implementation of customs tariffs will be essential in determining the impact on the market; If producers are allowed to export oil off the Gulf coast to non -American buyers without customs definitions, then the damage to Canadian oil will be simple.
It is not clear how customs definitions will affect the Western Canadian oil that is shipped across the United States on its way to Canadian refineries in Ontario and Montreal.
The prices of Canadian Canadian Select decreased in anticipation of fees, to the US West Texas Intermediate crude by about $ 15.5 a barrel on Friday, the largest discount since last July 30, according to the prices of the general index published on Bloomberg.
The partner and director of the first portfolio in Nine Busant Partners, Eric Notal in a post on the X platform last Friday, expected that the customs tariffs were expanded by 10% discount to 16 and $ 17 a barrel.
However, the weakness of the Canadian dollar may reduce the influence of Canadian producers in part, as he said, and the maintenance season for sandy oil usually begins in April and reduces crude production, which may be an additional reason for alleviating the effects of customs tariffs.
protection
Canada has partial protection in some of its production against customs definitions, through the recently increased capacity of the Trans Mountain pipeline, and extends from Alberta to a naval station near Vancouver.
And the expanded line, which started running last May, is not used enough due to the high traffic fees, but it may be used extensively to increase the shipping to Asia where oil exports are exempt from customs, at the expense of California refineries, which now import about half of the oil of the line .
The Canadian Petroleum Producers Trade Group said that it is difficult to predict how customs definitions affect the supply, demand and trading patterns, but they are “deeply disappointed” of customs tariffs.
“These customs definitions undermine our relationship … and it is likely to increase the costs and inflation of American consumers while damaging the economies of the two countries,” said the head of the Canadian Association of Petroleum Producers, Lisa Payton, in a statement.
Mexico
According to Bloomberg, the oil industry in Mexico may also be affected, which ships half of its exports of crude oil to the United States; If US fuel production companies, including Valro, Chevron Corp and Philip 6, abandoned Mexican oil, the alternative will be to enhance long -term sales to Europe and Asia, which presses the margins of the state -owned oil company Petroleus Mexicanos.
High fuel costs in the United States indirectly affect Mexico, which is the largest buyer of diesel and gasoline from the United States, and this Mexico may encourage the import of more Europe and Asia.
