Trump Cautioned on Imposing Oil Tariffs | Rigzone
The American Energy Alliance (AEA) reported Wednesday that it has joined a coalition of 23 free-market, small business and consumer groups urging President Trump not to enact tariffs on imported crude oil.
Although imposing tariffs has been touted as a means of helping U.S. oil and gas producers, AEA maintains the approach would not achieve the desired outcome.
“The President must continue to refuse the call by some to impose tariffs on imported oil,” AEA President Thomas Pyle remarked in a written statement emailed to Rigzone. “Tariffs would unquestionably do more harm than good for everybody. Without government intervention, we’ve already begun to see markets correct themselves and show signs of an upward trend.”
A letter that AEA and others sent to Trump argues that oil tariffs would raise costs for U.S. refiners “while doing nothing to increase their use of U.S. shale oil.” It explains that domestic refineries are designed to process domestic as well as foreign crudes and “cannot simply switch over” to exclusively run crude slates produced from U.S. shale plays. Group members also assert that imposing tariffs would raise pump prices for U.S. motorists and harm U.S. exporters of crude oil and refined products.
“Enacting a tariff on crude imports would likely launch a global retaliation and diminish the President’s incredible pro-energy, pro-consumer record,” Pyle commented after the coalition submitted the letter to the White House. “The best solution for U.S. oil and gas producers is reopening the economy in a safe and responsible manner.”
The full letter, including a list of signatories, is posted to AEA’s website.
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