The Libertarian Party of Wisconsin (LPWI) is greatly concerned over the statements made by President-elect Trump this past Monday regarding steep, unnecessary tariffs to be imposed upon Mexico and Canada. Tariffs, like any other taxes, are routinely passed on to consumers via higher prices. With his indication that all imports from our two closest neighbors would be subject to a 25% tax, the LPWI wonders if the President-elect truly understands the potential economic disaster he could be calling down upon our country.
In addition to gasoline and diesel fuel, hundreds of products are made from crude oil. Everything from fertilizer to soaps to perfumes and even vitamins all have ingredients that come from by-products of petroleum refining. In August of 2024 alone, the United States imported 136 million and 17 million barrels of oil from Canada and Mexico respectively. If President-Elect Trump really does mean all imports, how can he justify a 25% tax on over 150 million barrels per month that will be paid by American citizens?
Hopefully, Mr. Trump was just engaging in his usual, over the top hyperbole when he made his statements on social media and does not intend to tax all imports from Canada and Mexico. The American people deserve to know the details, or at least some more clarification. We are sure that the service industry workers might not feel empowered by not having to pay taxes on their tips when they have to pay 25% extra or more for gas to get to work.
Data on US crude oil imports can be found at the US Energy Information Administration’s website: https://www.eia.gov
For more on the Libertarian Party of Wisconsin, please visit www.lpwi.org.
