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Canadian heating oil, gasoline products exempt from Trump's increased tariffs

An Irving gas pump stands outside a convenience store on a snowy day.
Zoe McDonald
/
Vermont Public
An Irving gas pump at a Maplefields in Berlin is pictured on Tuesday, March 4, 2025. The Canadian oil company Irving distributes fuel in Canada and New England.

The increased tariffs the Trump administration imposed this month on goods coming from Canada won't apply to heating oil and gasoline many Vermonters rely on for energy.

There was concern that tariffs would apply to heating oil and gasoline from Canada under a new plan that went into effect on August 1.

That's because, for a short time this winter, the administration did impose a 10% tariff on these products.

But the policy was suspended while further negotiations took place. And now a new set of tariffs are in effect, including a 10% tariff on energy products.

Because they fall under the protection of the U.S.-Mexico-Canada Trade Agreement, heating oil and gas won't be affected.

"Most of the energy products that Vermonters use to drive to work and heat their homes would be exempt, and therefore that 10% would not be included in any price increases," said Matt Cota, who represents the Vermont Fuel Dealers Association.

Cota said it's an important policy change.

"A third of our refined product — meaning gasoline, diesel fuel, heating oil, kerosene and propane — come from Canada due to our proximity to the refineries in Quebec," he said.

State officials say electricity from Hydro-Quebec will also be exempt from the new tariffs.

Bob Kinzel has been covering the Vermont Statehouse since 1981 — longer than any continuously serving member of the Legislature. With his wealth of institutional knowledge, he answers your questions on our series, "Ask Bob."

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