Late Monday, President Trump announced a temporary pause on sweeping tariffs on all products imported from Canada and Mexico for 30 days. The news broke after 11th-hour conversations between Trump, Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. Sheinbaum and Trudeau pledged greater border security and efforts to stop the flow of drugs across the U.S. border, particularly fentanyl.

The tariffs were set to begin today, Tuesday, February 4, citing authority provided by the President under the International Emergency Economic Powers Act (IEEPA). The order would have imposed 25% tariffs on Canada and Mexico, with a carveout of 10% for Canadian “energy resources,” defined as “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals, as defined by 30 U.S.C. 1606 (a)(3).”

The lower 10% rate for energy imports was the result of engagement by a coalition of fuel industry groups including NEFI (click here for last week’s coalition letter) and energy producers, petroleum refiners, and their trade associations. Members of Congress from states and districts poised to be most adversely affected by tariffs also chimed in. 

Again, the White House indicates that this is a “temporary” 30-day pause on the tariffs. Between now and the end of this period, NEFI recommends that fuel dealers:

• Review supply contracts for any force majeure clauses or tariff-related provisions

• Contact suppliers to discuss how tariffs would affect existing agreements and how their businesses might plan for the possibility that tariffs will be reinstated

• Consider impacts on future pricing agreements with customers

• Maintain frequent communication with your business's legal, accounting, and marketing professionals

• Remain in close communication with your regional and state industry associations and monitor NEFI publications and alerts for future developments

Special thanks to NEFI Board Chair Ted Noonan of Noonan Energy, Vice Chair Steve Walsh of Davis Oil & Propane, and other key members of the leadership for making themselves available to the NEFI team at all hours, day and night, as we navigated a highly unpredictable and uncertain situation. We also appreciate our valued regional suppliers for being so accessible, and state and regional heating fuel associations who remained in constant communication with NEFI and joined an emergency touchpoint call on Monday to assess the situation and the broader industry response. 

NEFI Regulatory Counsel Rick Schweitzer continues to monitor the situation. Contact Rick at rpschweitzer@rpslegal.com or (703) 946-2548 with questions or concerns.