Among President Trump’s planned tariffs on imports from Canada and Mexico are 10-percent and 25-percent tariffs on Canadian and Mexican crude oil and natural gas products, respectively. In a new insight, Director of Energy and Environmental Policy Shuting Pomerleau estimates that the cost of the energy tariffs on oil and gas imports from Canada and Mexico would be approximately $6.5 billion ($5.2 billion from tariffs on Canada and $1.3 billion from those on Mexico) in the first year, hurting consumers and businesses alike.

She concludes:

This analysis shows President Trump’ oil and gas tariffs on Canada and Mexico will likely have a marked impact on U.S. businesses and consumers. The degree of this impact will depend on a variety of factors, such as how soon and how long the tariffs will be in place, how quickly U.S. refiners can change their operations to account for new costs, and geopolitical events.

In any event, the tariffs will create significant policy uncertainty for businesses, hindering their capacity to plan and invest, and harm U.S. consumers as businesses pass on their increased costs to them.

Read the analysis.