US consumers face “major consequences” as a result of what President-elect Donald Trump has proposed Canadian ratesaccording to Goldman Sachs Group Inc., questioning the bank about its implementation.
Trump’s proposed 25% tariff on all Canadian products would likely raise U.S. fuel prices, Daan Struyven, head of commodities research at Goldman, said in a roundtable interview. The tactic is reminiscent of Trump’s first term and can be a negotiating tool, he added.
Tariffs “could in theory have pretty significant consequences for three groups of people: US consumers, US refiners and Canadian producers,” he said on Wednesday. “With Trump’s focus on reducing energy costs, we believe Canadian tariffs are unlikely.”
The US imports nearly 4 million barrels of Canadian crude per day, allowing American producers to export more of their oil. The CEO of the Canadian Association of Petroleum Producers said the tariffs would be higher gasoline and energy costs For US consumers.
Other points from the briefing include:
- Iran’s oil flows are at risk due to tightening sanctions
- OPEC seems to be defending the price of $70 a barrel
- OECD inventories are 4% lower than historical average levels
- China and the US may continue to replenish their strategic stockpiles
- Goldman reiterated its 2025 forecast for Brent oil at $76 a barrel
