- President Donald Trump’s tariffs on Canada include a 10% duty on energy products, which are consumed by many Americans in northern states. On Sunday, a Canadian energy company said its U.S. customers will see price hikes because of the tariffs.
President Donald Trump signed executive orders Saturday to impose tariffs on America’s top trading partners, and the very next day a Canadian energy company said its U.S. customers will see higher prices.
But those hikes may be on hold for now. On Monday, Trump agreed to a one-month pause on a 25% general tariff and a 10% levy on Canadian energy imports after Prime Minister Justin Trudeau pledged more cooperation on border security. Otherwise, the duties would have gone into effect at midnight on Tuesday.
U.S. refineries, especially in the Midwest, rely on Canadian crude to process into gasoline, meaning prices at the pump are set to rise. Many Americans who live in northern states also buy energy products directly from Canadian companies.
That’s the case with Irving, which has been supplying the northeastern U.S. with energy since 1972, with the majority of production from its Saint John refinery in New Brunswick going to U.S. markets.
“This tariff will result in price increases for our U.S. customers and have impacts on energy security and the broader economy,” Irving said in a statement. “Given the importance of safeguarding the energy supply chain, we urge all stakeholders within government and industry to come together and work toward a resolution as soon as possible.”
While Trump campaigned on fighting inflation, his tariffs are set to hike prices across a range of everyday staples. On Sunday, he acknowledged their impact, admitting that there could be “some pain” ahead.
Earlier on Monday, he reached a deal with Mexico to pause his 25% tariff for a month. But a 10% tariff on China is approaching.
Meanwhile, Irving’s U.S. customers also got notices on Sunday that prices are going up. One even reached New Hampshire, where Douglas Irwin, who has written books on free trade and protectionism, is an economics professor at Dartmouth.
“If there is any doubt that tariffs are passed through to consumers, the cost of propane to heat my house just went up by the amount of the tariff,” he quipped as he posted an image of Irving’s notice on Bluesky.
Irving and Irwin didn’t immediately respond to requests for comment.
According to Canadian statistics, Canada accounted for 61% of U.S. crude oil imports in 2021, 98% of natural gas imports in 2020, 93% of electricity imports, and 28% of uranium purchases.
Nearby Maine was also bracing for price hikes from Trump’s tariffs on Canada. On Friday, Sen. Susan Collins said on X that 95% of the heating oil used by most Mainers comes from refineries in Canada, while the Air National Guard Base in Bangor “depends completely” on jet fuel and diesel from Canada.
“From fisheries to potato farmers to paper mills, these tariffs will have a significant impact on Maine’s economy and risk increasing costs for our residents,” she added.
