Big Oil: Trump Tariffs Hurt U.S. Energy Industry

U.S. oil and gas producers are urging President Donald Trump to rescind steel and aluminum tariffs imposed on Mexico, Canada and European Union.

“We understand what the president is trying to do in terms of the broader discussions, but from an energy perspective under NAFTA we've had open border trade policy for many years, we're significantly net exporters to Mexico,” says Jack Gerard, CEO of the American Petroleum Instittute

He fears the tariffs could disrupt the balance of trade already established within the energy industry.

“We import a fair amount of Mexican crude that comes to Houston, to the U.S., employing American workers, where we refine it and turn around and send it right back to Mexico as refined product, as gasoline,” Gerard told Fox Business Network.

Gerard says 77-percent of line pipe used by domestic oil producers is imported.

“Think of all that on ships today coming to the United States, all of sudden we're told we've increased to cost of that 25 percent, or we've been told there's been a quota imposed and by the way you've already reached your quota. So you see the disruption and uncertainty it creates,” he says.

Three nonprofit advocacy groups funded in part by the Koch brothers have written the president claiming the tariffs are already having the opposite effect of the 2017 tax cuts and raising prices on both consumers and businesses.

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