Midwest drivers, Pacific Northwest fare payers, will see prices first on pumps, if the president imposes a 25% tax on March 4th, utility bills will rise.
WASHINGTON – If President Donald Trump imposes a 25% tariff on imports from Canada on March 4, he pledged to do so on February 27, making him one of the first to see utilities and electricity prices rise in the Pacific Northwest.
The consensus was one of the potential tariff-related impacts identified by the 2,200 utility commissioners, local transmission operators and state regulators who attended the National Association of Regional Utilities (NARUC) Winter Energy Policy Conference on February 23-26 in Washington.
Trump’s pledge to place a 25% tariff on imports from Canada and Mexico, a further 10% on goods from China, and raise collections to 20% was a surrounding topic filtered into many presentations and discussions during the annual Narc event.
Utilities, grid operators and energy developers were particularly concerned about how tariffs on Canadian goods, including aluminum, would affect tax payers and oil refineries that provide many gasoline and heating fuels throughout the Midwest.
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Karen Herbert, president and CEO of the American Gas Association (AGA), said the 25% tariff on Canadian natural gas has “particularly exposed” electricity bill payers in some states.
“There’s a part of our country that we’re really trying to feel that. When these tariffs come out, it’s going to be uneven,” she said, adding, “Washington is 100% dependent on Canadian natural gas.”
“It hurts, but it can weather for a while. We store a lot of natural gas that we can use and we now fill it with the warm weather we are experiencing,” Herbert said.
“Free Trade in Our DNA”
Marty Durbin, president of the US Chamber of Commerce’s Global Energy Institute, said the chamber “has free trade in our DNA,” adding that not all tariffs are instinctively opposed to tariffs.
“There is a proper use of tariffs for national security reasons, but the indiscriminate use of tariffs in the way that was done is “we think it’s wrong” and “we’re trying to raise costs.”
Durbin, “Integrated Energy Dynamics” between Canada and the US includes “refinery in the Midwest Gulf Coast and elsewhere, intentionally designed to handle heavy crude oil from Canada.”
If the president complies with the proposed tariffs, he said, “it would have a very quick impact on consumers.” “In a few days or weeks, gasoline prices will start to rise,” especially in the Midwest.
Jason Grumet, CEO of the American Clean Power Association (ACPA), said imposing tariffs on mineral and metal imports from Canada can curb the “renaissance of American manufacturing” and “core aspects of economic and physical safety.”
Development of domestic supply lines for “re-shore” manufacturing in the US takes time. At present, the country cannot meet its own needs without importing aluminum, copper and other materials from Canada, he said.
“Supply chains are complicated. You can’t get them all back at the exact same time,” Gourmet said. “China spent 20 years on pieces by piece, stealing intellectual property and manufacturing capabilities. Basically, we need to put that back on pieces by piece.
“That means,” he continued. “When you build a facility, you need pieces, components. These components come from all over the world, and by definition, “universal tariffs” tend to affect almost everyone. ”
Grumet said the ACPA understands why Trump views tariffs as a negotiation tool and why it is “absolutely necessary,” but believes taxation should be more targeted.
“Other companies are doing things that are dumping their products and unfairly cannibalize American competition,” he said. “But if you really need a renaissance in American manufacturing, you have to realize that there is a global manufacturing community and you have a more accurate choice.”
Mark Menesez, president and CEO of the American Energy Association, said it was “stricken” to deliberate on the advantages and disadvantages of tariffs in terms of short-term impacts and long-term rewards.
“It’s safe to say that President Trump’s mind is made up of. He is absolutely certain. “Taxes are an effective trade tool and have existed for over 40 years when he first “engaged in public policy in the Reagan administration in the ’80s,” when he supported tariffs as a way to “leave other countries to the negotiation table.”
On March 4, the president collected tariffs and “consumers are feeling it at the pump,” Menesez said.
But it is part of a “integrated approach to economic policy.” And you can’t see it alone. ”
