The 10 percent tariff the president said he might impose in March could cause U.S. refineries to cut production and lead to higher prices.

U.S. refiners have become more reliant on heavy crude from Canada. Tariffs on Canadian crude oil imports could lead to higher gasoline prices for U.S. drivers.

McKercher said the language used by Trump in his tariff directive “gives the game away.” Essentially, by proposing 25 per cent tariffs on Canadian goods, except energy which was set at 10 per cent, Trump is revealing the country’s dependency on cheap Canadian energy and a concern about prices rising too high for Americans.