Maybe I need a primer on the economics of this tariff on Oil? Say a barrel of Candaian crude is $50 USD today. 25% tarriff would be 12.50 USD, bringing the purchase price to $62.50 USD to import into the US to send to a refinery.
Now that is assumption that 100% of tariff will be passed on, which it should?
Ok now you can argue that prices Canadian oil out of the US, because cheaper stock can be found elsewhere. Where is that elsewhere?
Texas refineries are built for heavy oil, specifically formulations from Venezuela and Canada. So will this drive more money to that loveable dictator, or will the refineries absorb it. Pass it along, and then hit the end customer?
Is my logic not right? Just seems a commodity that flows through a pipeline that can't just be switched, puts downstream at a disadvantage. If so, what is the problem? This will just shoot Trump in the foot in theory? Especially with the Oil lobby?
Seems like a bluff if what I wrote is remotely correct
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