Oil watchers say inflation risks will stave off Trump’s Canada tariff threat [Video]

Higher fuel prices could be in the cards if President-elect Donald Trump follows through with his tariff threats on Canada, according to industry experts, who are skeptical on whether the new levies will ever be implemented.

Trump on Monday pledged to implement additional tariffs on China, Canada and Mexico on day one of his presidency, according to his posts on social media platform Truth Social. He said he would sign an executive order on Jan. 20 imposing a 25% tariff on all imports from Canada and Mexico, a move that may breach the terms of a regional free trade agreement.

Goldman Sachs’ Co-Head of Global Commodities Research Daan Struyven said that if a 25% levy hit Canadian crude exports to the U.S. “that could, in theory, lead to some pretty significant consequences for three groups.”

U.S. refiners who rely on Canadian oil barrels could face lower profit margins, and consumers may potentially face …