Image Source: PexelsCanada is America’s second-largest trading partner. In 2023, of the $416 billion of imported goods from Canada, $119 billion is oil and gas, petroleum products, and coal. (Total merchandise imports are $3.1 trillion.) From the Milwaukee Sentinel Journal today:
If Trump follows through on implementing 25% tariffs on Canada and Mexico Feb. 1, then Midwest gas prices could be be affected in a few different ways, De Haan said in an interview with the Journal Sentinel last week.
The 25% tariffs could increase the price of Canadian crude oil from about $63 per barrel to $80, according to De Haan. The refineries that serve Wisconsin rely primarily on Canadian crude oil, so within a few days of the tariffs kicking in, prices at the pump could rise between 20 and 50 cents a gallon.
This presumes Canada does not cease sales of crude or some other retaliation of a similar nature.Saturday should be interesting.More By This Author:Business Cycle Indicators – Where’s That Recession? Bessent’s 3-3-3 “Plan” In The Context Of 2024Q4 Advance GDP ReleaseU.S. Economic Growth Continues
