Trump's Proposed Tariffs on Canadian Goods Could Drive Up U.S. Gas Prices

President-elect Donald Trump's 25% tariff plan on Canadian imports raises concerns about energy costs and economic impacts on both nations.

Canada supplies over 50% of U.S. crude oil imports, with Alberta contributing 4.3 million barrels daily, covering about 25% of U.S. energy needs.
Alberta Premier Danielle Smith warns that U.S. gas prices could rise by up to 25%, adding approximately $1 per gallon, if tariffs are implemented.
Canadian heavy crude oil is critical for U.S. refineries, particularly in the Midwest, as their infrastructure is designed to process heavier oil types.
Experts caution that higher energy costs from tariffs could exacerbate inflation in the U.S., impacting gasoline and other petroleum-based products.
Canadian officials are exploring diplomatic responses to the tariff threat, emphasizing the mutual benefits of integrated trade and energy markets.