The Politics and Consequences of Trump’s Tariffs

Trump's proposed tariffs on Canada and Mexico will trigger changes in North American crude flows, reducing U.S. oil demand by 2026, according to Wood Mackenzie. Further, WoodMac says it expects Trump’s tariffs to shave 50,000 bpd off U.S. oil demand by next year. Mexican exports are expected to shift to European and Asian markets in response to the 25% tariff, while Canadian crude flows to the US are expected to continue as tariffs on energy are reduced to 10%. On top of this, rising U.S. crude inventories and weak demand continue to throw…