U.S. could reach deal with Canada that avoids oil and gas tariffs, energy secretary says

U.S. could reach deal with Canada that avoids oil and gas tariffs, energy secretary says


Energy Sec. Wright: We can get to no or very low tariffs, but it's got to be reciprocal

HOUSTON — The U.S. could reach an agreement with Canada that avoids tariffs on imports of oil, gas and other energy resources, Energy Secretary Chris Wright said Monday.

Wright said such a scenario is “certainly is possible” but “it’s too early to say” in response to a question from CNBC during a press conference at the CERAWeek by S&P Global. The U.S. is in “active dialogue” with Canada and Mexico, the energy secretary said.

President Donald Trump has paused until April 2 tariffs on Mexican and Canadian imports that are compliant with the agreement which governs trade in North America. Trump originally imposed broad 25% tariffs on goods from both countries as well as lesser 10% tariffs on energy imports from Canada.

It’s unclear, however, how much of the oil, gas and other energy that the U.S. imports from Canada is compliant with the United States-Mexico-Canada Agreement. Wright declined to provide specifics when CNBC asked how much of those imports are USMCA compliant.

“I’m going to avoid the details for now,” Wright said. The energy secretary said, “We can get to no tariffs or very low tariffs but it’s got to be reciprocal” in an interview with CNBC’s Brian Sullivan.

Canada’s energy minister, Jonathan Wilkinson, warned last week that energy prices will rise in the U.S. if the tariffs on energy imports go into full effect.

“We will see higher gasoline prices as a function of energy, higher electricity prices from hydroelectricity from Canada, higher home heating prices associated with natural gas that comes from Canada and higher automobile prices,” Wilkinson told CNBC’s Megan Cassella in an interview.

The U.S. has been the largest producer of crude oil and natural gas in the world for years. But many refiners in the U.S. are dependent on heavy crude imported from Canada. The U.S. imported 6.6 million barrels of crude oil per day on average in December, more than 60% of which came from Canada, according to the Energy Information Administration.

Wright acknowledged that the tariffs are creating uncertainty in energy markets as negotiations continue.

“We’re in the middle of negotiations for where things are going to go with tariffs, so that feels frightening and gripping right now but this time will pass,” Wright said. “Deals will be made, we’ll get certainty and we’ll have a positive economic environment for Americans going forward.”

U.S. crude oil fell more than 1% Monday to close at $66.03 per barrel, while global benchmark Brent closed at $69.28 per barrel. Crude oil futures have pulled back substantially as Trump’s trade policy creates uncertainty and OPEC+ has confirmed that it plans to gradually bring back 2.2 million barrels per day of production beginning next month.



Source

CNBC Daily Open: Certainty of ‘reciprocal’ tariffs better than confusing legal tussle
World

CNBC Daily Open: Certainty of ‘reciprocal’ tariffs better than confusing legal tussle

A large number of commercial vehicles were assembled at Yantai Port for shipment and export overseas in Yantai City, Shandong Province, China, on April 24, 2025. CFOTO | Future Publishing | Getty Images A U.S. federal trade court striking down President Donald Trump’s “reciprocal” tariffs on a broad swathe of countries seems, on the surface, […]

Read More
Shein’s embattled IPO signals mounting troubles for fast fashion giant
World

Shein’s embattled IPO signals mounting troubles for fast fashion giant

Bus stop advertising for Chinese fashion company Shein on 4th May 2025 in London, United Kingdom. Mike Kemp | In Pictures | Getty Images Fast fashion giant Shein’s troubles continue to mount after its much anticipated London initial public offering (IPO) reportedly hit a fresh roadblock. The e-commerce behemoth is now aiming for a Hong […]

Read More
South Korea’s Hybe opens China office amid hopes of a K-pop reversal from Beijing
World

South Korea’s Hybe opens China office amid hopes of a K-pop reversal from Beijing

The Hybe Building in Seoul, South Korea. Sopa Images | Lightrocket | Getty Images South Korea’s largest K-pop agency Hybe has established its first office in China — amid signs that Beijing is lifting its unofficial ban on K-pop shows. The agency behind global sensation BTS has been preparing to establish itself in China since last […]

Read More