After announcing steep tariffs on Mexico and Canada, President Donald Trump has put them on pause for one month after reaching agreements on border security measures. A 10 percent across-the-board tariff on China remains, and the Chinese government has returned the favor by imposing retaliatory tariffs on certain American goods, including a 15 percent levy on liquified natural gas.
Pausing these tariffs is good news for consumers and businesses alike. Although it's uncertain what will happen after the 30-day mark, one thing is clear: A trade war will increase the costs of all goods, especially energy.
Before the tariffs were paused, Trump threatened to implement a 10 percent fee on Canadian energy imports including oil and gas, critical minerals, and uranium. The U.S. is the largest producer of oil and natural gas in the world and continues to reach new heights of production. After averaging a record 12.9 million barrels of crude oil per day in 2023, American oil production topped 13.4 million barrels per day in August 2024, according to the Energy Information Administration.
