The federal government is considering levying a range of tariffs on products imported into the United States, potentially including a 25% blanket tariff on all items imported from our North American neighbors, Canada and Mexico. If such tariffs were to include crude oil and refined products, the consequences could be significant.
About 60% of the crude oil that runs through U.S. refineries is extracted right here at home. However, our refineries run on many different types of crude oil, some of which we don’t produce here or can’t economically transport. In those cases, we use imports.
There are hundreds of varieties of crude oil around the world. Different types of oil require different refining processes to make the fuels we need in the quantities we need. Many American refineries need heavier crudes than what is largely produced in the United States.
