Who will foot the bill for the oil tariff? Goldman Sachs: Each American household will pay $170

Goldman Sachs has stated that the United States may impose tariffs on oil imports, leading to higher costs being passed on to consumers and resulting in consumers paying $22 billion in fees, which will not help stimulate domestic crude oil production. Analysts, including Callum Bruce, noted in a report that the taxes the Trump administration may impose, including taxes on funds from Canada and Mexico, could mean a cost of $170 per household. Since Trump took office last month, global commodity markets, including oil, have been volatile as the U.S. President vigorously pursues a series of measures to disrupt the global trade system. In addition to threats against imports from Mexico and Canada, the U.S. government has also targeted goods from China and vowed to impose tariffs on steel and aluminum, as well as so-called reciprocal taxes on all countries. The analysts stated in their report, "We find that a 10% tariff on crude oil by the United States will not significantly increase U.S. production, as the light oil produced in the U.S. does not match the heavy oil required by many U.S. refineries." They also mentioned that, at the same time, if a 10% tariff is imposed, the average retail gasoline price could increase by 7 cents per gallon.