The Globe and Mail reports in its Wednesday edition that Canada's energy industry was blindsided by U.S. president-elect Donald Trump's threat of across-the-board tariffs on imports, which it said would disrupt decades of free trade in oil and gas, reduce production and push up fuel prices for American consumers.
The Globe's Jeffrey Jones and Emma Graney write that Mr. Trump's shot across the bow from his social-media platform late Monday, raising the prospect of 25-per-cent import duties on Canadian and Mexican products, did not mention oil and gas specifically. It is a familiar bargaining pattern from the blustery incoming leader. At more than four million barrels a day, Canadian crude makes up about half the supply imported into the United States. The oil is a mainstay primarily for refineries located in the U.S. Midwest.
Refineries in the U.S. Midwest have been configured to process the heavier Canadian blends. Canadian energy shares were under pressure on Tuesday in response to what was perceived by investors as an unexpected new risk that could limit production. The S&P/TSX Capped Energy Index fell 2.2 per cent, with companies such as Tourmaline Oil, Suncor and Cenovus among the losers on the day.
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