effect – Our Story Insight

‘Trump effect’ raises hopes for cannabis rally

admin — Sat, 01 Nov 2025 21:26:25 +0000

Oils containing CBD (Cannabidiol).

Geoffroy Van Der Hasselt | AFP | Getty Images

Cannabis stocks could be poised for a rally after years of stagnation, fueled by investor optimism over the possibility for new federal rules for hemp-derived products and signals that President Donald Trump could take a more permissive stance on marijuana.

Publicly traded cannabis companies have seen their share of ups and downs. Verano Holdings reported earnings Wednesday that saw revenues of $203 million, up slightly from the previous quarter but down 6% year-over-year. However, Verano posted a net loss of $44 million, partly due to a $5 million impairment charge on a facility in Pennsylvania and $10 million in legal contingencies as a result of a settlement.

Next week, two U.S. cannabis giants, Curaleaf and Trulieve, are set to follow in reporting earnings. While the sector is down roughly 10% this year, based on cannabis-focused ETFs, some executives, like the CEO of Tilray Brands, remain optimistic for a turnaround. Already, in October, Tilray Brands‘ stock jolted up 22% after reporting better-than-expected fiscal first-quarter results.

“We could be looking at a true inflection point for cannabis. If reforms move forward, it could attract more companies to do business in the U.S.,” Tilray CEO Irwin Simon told CNBC.

Stock Chart IconStock chart icon

Cannabis company stocks Tilray Brands, Curaleaf and Trulieve

Three developments are driving the growth: Trump’s seeming embrace of Medicare coverage for CBD, a non-intoxicating hemp-derived cannabis compound; the president’s statements about reclassifying the drug status of marijuana; and movement in Congress to regulate hemp.

Meanwhile, cannabis is becoming more popular than ever. As of a 2024 report, daily or near-daily marijuana use surpassed daily drinking in the U.S., based on analysis of 40 years of data from Carnegie Mellon University.

The annual value of the U.S. production of cannabis grew 40% last year from the previous year, according to the Department of Agriculture, and cannabis-derived products, which include CBD and marijuana-based items, are now projected to reach a $160 billion global market by 2032, according to Grand View Research.

The ‘Trump effect’

Optimism in the cannabis market surged in September after Trump shared a video on Truth Social that promoted Medicare coverage of CBD and made unproven anti-aging claims about the substance.

The video was produced by The Commonwealth Project — which advocates for seniors using cannabis and was founded and is funded by Palm Beach billionaire Howard Kessler — and directly appealed to the president.

Known for pioneering affinity credit cards, Kessler shifted to cannabis advocacy in 2019 but has been in Trump’s orbit since at least 2005, attending Trump’s wedding to Melania Trump and appearing at Mar-a-Lago and state dinners. Neither Kessler nor the White House responded to a request for comment on the matter.

Cannabis stocks reacted immediately to the video. On the day it was posted, shares of Tilray spiked 42%, while Aurora Cannabis stock gained 25%, shares of Canopy Growth jumped 18% and Cronos Group stock added 15.5%.

“A lot of folks in the industry saw him [Trump] posting the video as a bit of a surprise but we think he’s trying to gauge how the public feels about cannabis products,” said Adam Smith, executive director of the Marijuana Policy Project, which advocates for the legalization of marijuana. “Some people call it the ‘Trump effect,’ and think if he leans into CBD, it’s possible that other Republicans will support.”

There is limited data on effective doses of CBD for inflammation or chronic pain, particularly in seniors, according to the National Institutes of Health. Kevin Sabet, president of Smart Approaches to Marijuana, an organization opposed to marijuana, said people are overreacting to the post.

“It’s a big stretch to say a post or two is a fully throated endorsement of reform,” Sabet told CNBC. “A lot of times his posts don’t line up with formal policy positions.”

To date, the FDA has only approved one CBD-based drug, Epidiolex, to treat rare forms of epilepsy. Other uses lack scientific evidence and have “largely unknown” effects, said Meg Haney, director of the Cannabis Research Laboratory at Columbia University.

Emoji gummies by JustCBD are displayed at the Cannabis World Congress & Business Exposition trade show, Thursday, May 30, 2019 in New York. The treats contain non-psychoactive cannabidiol, CBD.

Jeremy Rehm | AP

The Farm Bill

Trump’s post also adds to momentum around regulating hemp — which is a variant of the marijuana plant that doesn’t cause a “high, according to the Centers for Disease Control and Prevention — which was legalized under the 2018 Farm Bill. Congress is weighing updates to the bill by year’s-end that could adopt long-awaited federal standards for labeling, testing and safety of hemp-derived products left unregulated under the original law.

“Regulation isn’t scary, as long as it is effective, because the clearer the lines are, the better it is to be in the business [when] you don’t have a looming axe over your head,” said Pamela Epstein, the chief legal and regulatory officer of hemp producer Terpene Belt Farms.

The 2018 legalization triggered a $1.6 billion hemp market by 2023, according to Grand View Research. Hemp-derived CBD products containing less than 0.3% THC — the psychoactive compound responsible for a high — were legalized under the bill and spread rapidly into gummies, beverages, creams and even pet treats, and are projected to drive more than 20% growth by 2030, the data firm said.

But the vacuum of oversight left consumers exposed to mislabeled, untested and sometimes unsafe products, Smith told CNBC.

“It’s possible in the hemp sector grew a little too fast without rules,” Smith said. “Problems came up with some stuff masquerading as CBD but having high levels of THC, products marketed to kids and some products with tainted samples.”

Proposals in Congress range from an outright ban on hemp to tightening THC limits. Others in the cannabis industry are lobbying for an “alcohol-model” framework — with the FDA overseeing product safety and the Alcohol and Tobacco Tax and Trade Bureau managing taxation and distribution.

“Clear rules aren’t scary,” said Tilray CEO Simon. “They’re the best way to grow sustainably and shed the uncertainty that’s defined this space for years.”

People like Epstein caution that a complete ban could cripple the hemp economy, which supports about 320,000 jobs nationwide, according to the U.S. Hemp Roundtable and industry-related reports. But others like Michael Mayes, CEO of cannabis consulting firm Quantum 9, said any form of federal standards is essential to legitimize the market and draw institutional investors.

“Federal regulations would help some investors see cannabis as not a fringe investment with their money,” Mayes told CNBC. “By next year, it’s possible. Smart, consistent rules could be the key to unlocking billions in growth while working to ensure consumer safety.”

Marijuana rescheduling

Trump’s apparent openness to CBD has fueled speculation he may go further.

In August, he said his administration was “looking at” reclassifying marijuana from a Schedule I drug — alongside heroin and LSD — to a Schedule III drug.

The move would not legalize recreational marijuana but it would make it easier to sell, advocates said. It would also improve access to banking and financial services because it would lift certain IRS tax restrictions, which bar cannabis businesses from deducting standard expenses. Changes could also ease barriers to conducting scientific research, which experts said has been stifled under the drug’s current classification.

“To demonstrate that cannabis has medical utility, we need to do large, controlled trials, but we can’t really do those if it’s a Schedule I drug. As a result, that means you can’t do the studies needed to reschedule it,” Haney said. “It’s like the chicken and egg conundrum.”

A White House official described the rescheduling process as ongoing and said that “all policy and legal requirements and implications are being considered.”

Cannabis industry sources said investor optimism partly centers on Trump’s chief of staff, Susie Wiles, who previously worked at Ballard Partners, a Florida lobbying firm representing Trulieve, one of the largest U.S. cannabis companies. Though Wiles wasn’t registered as Trulieve’s lobbyist, she is described by multiple sources in the cannabis industry as a close friend of Trulieve CEO Kim Rivers. The people spoke anonymously to talk candidly about the matter.

According to the Florida Division of Elections, Trulieve spent more than $100 million supporting a failed ballot measure to legalize recreational cannabis for adults 21 and older. The company reportedly played a key role in securing Trump’s backing for the initiative. For the presidential race, according to Federal Election Commission filings, Trulieve donated $750,000 to Trump’s inauguration committee and another $250,000 to his MAGA Inc. super PAC.

Rivers attended two pre-inauguration events, including a dinner for Vice President JD Vance, and reportedly joined a $1 million-a-plate fundraiser at Trump’s New Jersey golf club in August, where she urged him to reclassify marijuana, the Wall Street Journal reported.

Two days after the fundraiser, Trump made his “looking at” comments about marijuana’s classification.

Wiles, Rivers and Truileve did not respond to requests for comment.

A man prepares a marijuana cigarette at Washington Square Park on April 20, 2023 in New York City.

Leonardo Munoz | Corbis News | Getty Images

Republican roadblocks

Despite optimism from investors and advocates, many Republican lawmakers are moving to rein in hemp-derived products, citing safety concerns.

The backlash stems from hemp’s post-2018 boom, which quickly turned into a glut. Licensed acreage soared 445% over the previous year by 2019, according to advocacy and research group Vote Hemp, but the market became oversaturated with products, which forced many retailers and producers to pivot or close, experts said.

“Very quickly, there became a bloat of products and for a lot of the companies, the financial results weren’t there. There wasn’t growth. You had some really tough balance sheets, and I think the investors were unsure of the underlying fundamentals,” Cronos Group CEO Michael Gorenstein said.

Today, the market has rebounded but remains the “Wild West” without regulations, Smith said. FDA research this summer linked unregulated CBD to potential liver damage, and experts warn that THC in hemp can be chemically altered or added in quantities that make it as intoxicating as marijuana.

Lawmakers have responded to safety concerns.

Over the summer, Rep. Andy Harris, R-Md., introduced a bill redefining hemp to exclude any product with “quantifiable” THC, which passed a House committee along party lines. The Senate Appropriations Committee advanced similar language unanimously in July, as Sen. Mitch McConnell, R-Ky., — who championed the 2018 legalization effort — called for restoring the law’s “original intent.” A Congressional Research Service report in August said the proposals would “effectively” ban almost all hemp-derived products.

Looking ahead, many in the industry said the future rests on what Trump does next, particularly in the next few months. Even the perception of regulatory change has spurred investor optimism.

“For many of us, it’s not a question of when but what the regulations will be and how they’ll be enforced,” Gorenstein said. “If the next administration delivers clarity, that alone could shake up this industry.”

The post ‘Trump effect’ raises hopes for cannabis rally appeared first on Our Story Insight.

What Elon Musk said about tariffs and their potential effect on Tesla

admin — Wed, 23 Apr 2025 00:00:38 +0000

U.S. President Donald Trump talks to the media, next to Tesla CEO Elon Musk with his son X Æ A-12, at the White House in Washington, D.C., U.S., March 11, 2025.

Kevin Lamarque | Reuters

Elon Musk said on Tuesday that he doesn’t like high or unpredictable tariffs, but any decision on what happens with them “is entirely up to the president of the United States.”

Speaking on his company’s first-quarter earnings call, with tariff-related uncertainty swirling across the economy, Musk said Tesla is in a relatively good position, compared to other U.S. automakers, because it has “localized supply chains” in North America, Europe and China.

Musk said Tesla is the “least-affected car company with respect to tariffs at least in most respects.”

Tesla reported troubling quarterly earnings and sales on Tuesday, including a 20% year-over-year drop in automotive revenue and a 71% plunge in net income. The company also said that it wasn’t providing any guidance for 2025 at least until its second-quarter update.

While Musk is one of President Donald Trump’s closest advisers, tariffs are the one issue where he’s partially broken with the administration. He recently called Peter Navarro, Trump’s top trade adviser, a “moron” and “dumber than a sack of bricks.”

On Tuesday’s call, however, Musk said, “If some country is doing something predatory with tariffs,” or “if a government is providing extreme financial support for a particular industry, then you have to do something to counteract that.”

Tesla’s stock price has been hammered since the president floated his plan for widespread tariffs earlier this month, and that was after the shares plunged 36% in the first quarter, their worst performance for any period since 2022.

Because Tesla manufactures cars that it sells in the U.S. domestically, the company isn’t subject to Trump’s 25% tariff on imported cars. But Tesla counts on materials and supplies from China, Mexico, Canada and elsewhere for manufacturing equipment, automotive glass, printed circuit boards, battery cells and other products.

Musk said he offers his advice to the president on tariffs.

“He will listen to my advice. But then it’s up to him, of course, to make his decision,” Musk said. “I’ve been on the record many times saying that I believe lower tariffs are generally a good idea.”

He added that he’s an advocate for “predictable tariff structures,” as well as “free trade and lower tariffs.”

Musk said Tesla’s energy business faces an “outsized” impact from tariffs because it sources lithium iron phosphate battery cells, used in his company’s cars, from China.

“We’re in the process of commissioning equipment for the local manufacturing of LFP battery cells in the U.S.,” he said. But he said the company can “only serve a fraction of our total installed capacity” with its local equipment.

“We’ve also been working on securing additional supply chain from non-china based suppliers, but it will take time,” he said.

Musk called Tesla the most “vertically integrated car company” but said that there are still plenty of parts and materials that come from other countries. Even though it’s built a lithium refinery in Texas, “we’re not growing rubber trees and mining iron yet,” he said.

WATCH: Tariffs on batteries out of China can end up being really costly

The post What Elon Musk said about tariffs and their potential effect on Tesla appeared first on Our Story Insight.

Auto Tariffs Take Effect, Putting Pressure on New Car Prices

admin — Sat, 05 Apr 2025 01:29:19 +0000

Follow live updates on today’s jobs report and the global market turmoil from Trump’s tariffs.

Tariffs on imported vehicles took effect Thursday, a policy that President Trump said would spur investments and jobs in the United States but that analysts say will raise new car prices by thousands of dollars.

The 25 percent duty applies to all cars assembled outside the United States. Starting May 3, the tariff will also apply to imported auto parts, which will add to the cost of cars assembled domestically as well as auto repairs.

There will be a partial exemption for cars made in Mexico or Canada that meet the terms of free trade agreements with those countries. Carmakers will not have to pay duties on parts like engines, transmissions or batteries that were made in the United States and later installed in cars in Mexican or Canadian factories.

That provision will reduce the impact on vehicles like the Chevrolet Equinox electric vehicle, which is assembled in Mexico but includes a battery pack and other components made in the United States. General Motors will pay a tariff only on the portion of the car made abroad.

At the same time, the duty on parts will raise the cost of cars made in Michigan, Tennessee, Ohio or other states. That is because most cars rolling out of U.S. factories contain components made abroad, often amounting to more than half the cost of the vehicle.

About 90 percent of the value of some Mercedes-Benz cars made in Alabama, for example, is in engines and transmissions that are imported from Europe, according to data compiled by the National Highway Traffic Safety Administration.

The impact of the tariffs on individual vehicles will vary widely. Cars like the Tesla Model Y, made in Texas and California, or Honda Passport, made in Alabama, have high percentages of U.S.-made parts and will pay lower tariffs.

Tariffs will be highest on cars manufactured abroad, like the Toyota Prius made in Japan or Porsche sports cars made in Germany.

Even people who don’t buy new cars will be hit by the tariffs because they will pay more for parts like tires, brake pads and oil filters.

Michael Holmes, co-chief executive of Virginia Tire and Auto, a chain of auto repair and maintenance shops, said he and his suppliers would initially try to absorb most of the increased cost.

“That’s not sustainable,” Mr. Holmes said. “It’s magical thinking to think businesses won’t pass this on.”

The auto tariffs could also push up prices for used cars over time, analysts said, by increasing demand for those vehicles as new ones become unaffordable for many buyers. Insurance premiums may also rise because repairs will cost more.

The post Auto Tariffs Take Effect, Putting Pressure on New Car Prices appeared first on Our Story Insight.

Stocks Slump as Trump Tariffs Take Effect

admin — Tue, 04 Mar 2025 17:52:38 +0000

Global stocks tumbled on Tuesday as investors’ concerns over the future health of the economy mounted after President Trump’s broad tariffs against Canada, Mexico and China went into effect.

The S&P 500 fell over 1.8 percent, adding to the 1.8 percent loss on Monday that was its sharpest decline this year. The Nasdaq Composite index also dropped over 1 percent, putting the index in what is known as a correction, defined as a drop of 10 percent or more from its recent peak, which was set in December, although much of the sell-off has materialized over the past two weeks.

Investors appeared to rush into the safety of government debt, helping to lower the yield — yields move inversely to prices — on the 10-year Treasury note to its lowest since October.

The drop in yield, however, also signaled mounting concerns about the ability of the economy to withstand incoming tariffs for too long. That concern was also evident in a shift in expectations for the number of times the Federal Reserve will cut interest rates.

Investors worry that while in the near term tariffs are likely to accelerate inflation, with the Fed holding rates elevated to deal with it, the longer term effect will be slow economic growth and an economic downturn, in which the Fed would likely rapidly cut interest rates.

Investors now expect the central bank to cut rates as many as three times this year, a sudden change from earlier this year when just one rate cut was predicted. The shift appeared to reflect worries that the Fed will be pushed into lowering rates quickly to prop up an ailing economy.

“While a trade war might have short-term reflationary implications,” said Ian Lyngen, an interest rate strategist at BMO Capital Market, “it also carries with it significant risks to global growth.”

The stock declines in the United States were broad based, with roughly four out of five stocks in the S&P 500 lower for the day. Among those hit hard are Ford, down 7 percent; General Motors, down 14 percent; and Tesla down d 34 percent. The tech sector, along with consumer discretionary stocks like cruise lines and restaurants, were the hardest hit of the index.

European stocks had earlier slumped as investors weighed the prospects of a global trade war after China and Canada quickly imposed tariffs of their own.

The Euro Stoxx 50 index, which comprises the eurozone’s largest companies, fell 2.5 percent, its worst performance since August. Germany’s benchmark index, the DAX, dropped 3.1 percent, erasing its gains from the previous day when it hit a record on the promises for more European military spending.

Shares of German automakers and suppliers were hit especially hard as many have assembly plants in Mexico for vehicles they sell in the United States. Volkswagen shares fell about 4 percent, BMW’s shares dropped more than 5 percent. Daimler Truck, which owns Freightliner and Thomas Built Buses, slid more than 6 percent. Continental, a maker of auto parts that also produces in Mexico, fell 9 percent.

The U.S. dollar index, which measures the currency against a basket of other major currencies, was 0.5 percent lower. The Canadian dollar hit a one-month low against the dollar before recovering its losses.

But the Mexican peso remained weaker against the U.S. dollar, its fourth consecutive day of declines.

Oil prices also fell after the Opec oil cartel and some of its allies said on Monday that they would increase production. Brent crude, the international benchmark, dropped 1.6 percent to $70.47 a barrel.

Amid a heavy morning of losses, some European defense companies held on to gains as the European Commission proposed additional military spending, including a measure that would provide 150 billion euros ($158 billion) in loans to E.U. countries for defense investment. Shares in the German arms manufacturer Rheinmetall rose 1 percent, extending a 14 percent gain from the day before. Shares of BAE Systems, a British defense contractor, rose 1 percent after climbing 15 percent on Monday.

The post Stocks Slump as Trump Tariffs Take Effect appeared first on Our Story Insight.

Industries Brace for Trump Tariffs Taking Effect on Tuesday

admin — Mon, 03 Mar 2025 20:37:41 +0000

When President Trump announced last week that an additional 10 percent tariff on Chinese goods would take effect on Tuesday, Logan Vanghele immediately called the logistics company that was handling a $120,000 shipment of aquarium products for his small business.

The cargo was on a ship en route to Boston from China. His message was clear: “Get this thing off the boat, please.”

Company executives and foreign officials are scrambling to avert the consequences of another tight deadline from Mr. Trump, who has threatened to put stiff tariffs on goods coming in from China, Canada and Mexico starting just after midnight Tuesday.

And at the White House on Monday, Mr. Trump said that there was no chance for a last-minute deal to avert them.

The president describes this as an effort to pressure those countries to stop the flow of deadly drugs and migrants to the United States. But Mr. Trump’s game of brinkmanship with America’s three largest trading partners is creating intense uncertainty for business owners.

That includes Mr. Vanghele, 28, who runs a small company that sells lighting and equipment for aquariums, all of which is made in China. He had no idea that the shipment — one of his biggest so far — could face such fees when it left Yantian Port in southeastern China in January, just days before Mr. Trump’s inauguration. In a frantic effort to avoid paying roughly $25,000 in tariffs, Mr. Vanghele pleaded with the logistics firm last week to unload his container at a port in Norfolk, Va., where it stopped on Friday, instead of traveling on to Boston.

While it is possible that Mr. Trump’s new tariffs will include an exemption for goods that are already on the water, there is no guarantee.

“Even if I’ve got to pay an absurdly high amount for it to get trucked over, it’s not going to come close to what the tariffs are,” Mr. Vanghele said. “I’m basically in Hail Mary mode.”

The tariffs — which would add a 25 percent fee on all Mexican and Canadian exports coming across those borders and an additional 10 percent for Chinese goods — could still be pushed off.

Mr. Trump had threatened to impose them on the three countries beginning Feb. 4 but decided to pause the levies on Canada and Mexico for one month after the countries promised measures like Mexico’s sending more troops to the border and Canada’s appointing a “fentanyl czar.”

Mr. Trump did move forward with imposing a 10 percent tariff on all products from China, which triggered retaliation from that country. He is now threatening another 10 percent on all Chinese imports, which would come on top of the 10 to 25 percent tariffs he imposed on many Chinese products in his first term.

Howard Lutnick, the commerce secretary, said in an interview on CNN on Monday that the Mexicans and Canadians had “done a nice job on the border” but that fentanyl deaths had not fallen by enough.

The president has “to decide how he wants to play it,” Mr. Lutnick said. “He’s going to decide this afternoon and tomorrow we’re going to put out those tariffs.”

Canada and Mexico are both deeply dependent on exports to the United States, and Mr. Trump’s threats have whipped their governments into action. Delegations of officials have made trips to Washington in recent weeks, including to meet with Mr. Lutnick.

In contrast, Chinese officials have not rushed to Washington with new concessions. People familiar with the discussions say that Beijing is still probing what Mr. Trump wants more broadly from the relationship.

President Claudia Sheinbaum of Mexico said in a news conference Monday that meetings with U.S. counterparts had gone “very well” and that her government will now wait for Mr. Trump’s decision. Ms. Sheinbaum displayed a graphic with data from U.S. Customs and Border Protection showing a 49.9 percent drop in fentanyl seizures on the border from October, when she took office, to January.

“We have a plan, A, B, C,” she said. “We have communicated, we have made agreements and coordination, but it depends on the president of the U.S. Whatever the decision is, we will also make our decisions.”

The prospect of new tariffs — in addition to a variety of other proposed levies on steel, aluminum, copper, timber and other products — have elicited anxiety and frustration from businesses selling everything from automobiles to breast pumps, who say tariffs will raise their costs as they move goods across borders.

Canada, Mexico and China account for more than 40 percent of U.S. imports. The tariffs that Mr. Trump threatened would dwarf any of the trade measures he has previously taken, raising the average U.S. tariff rates “to levels not seen since the 1940s,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics.

For Canada and Mexico, most trade with the United States has faced zero tariff rates since the 1980s, he said, with free trade agreements for automobiles even dating back to the 1960s.

“Increasing tariffs from zero to 25 percent overnight is likely to be much more disruptive to those now highly integrated North American supply chains than anything President Trump did in his first term,” Mr. Bown said.

Of all the industries that depend on North American trade, automotive manufacturing could see the biggest impact. Canada and Mexico account for nearly half of U.S. car imports and exports, and an even greater share of the trade in motor vehicle bodies and parts.

Automakers have argued that parts and vehicles that are exempt under the current free trade treaty should continue to cross borders duty free.

“Our American automakers, who invested billions in the U.S. to meet these requirements, should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American work force,” said Matt Blunt, the president of the American Automotive Policy Council, which represents General Motors, Ford Motor and Stellantis.

Automakers have petitioned the White House arguing for such an exemption, but people familiar with the deliberations say the president has not seemed amenable to the idea.

Even if tariffs are ultimately not imposed, their threat makes it difficult for automakers to plan, analysts say. It typically takes four years or more to design a new car and outfit a factory to produce it.

“Automotive lead times are generally longer than political lead times,” said Brian Irwin, a managing director at the consulting firm Alvarez & Marsal who advises clients in the auto industry.

Companies cannot quickly relocate production to the United States and will have to pass the tariffs on to customers, adding thousands of dollars to car prices. “You don’t have to be an expert in autos to see how detrimental this would be,” said John Helveston, an assistant professor at George Washington University who teaches engineering management.

There may be only one or two suppliers for certain precision components, he said, and none producing in the United States. “It’s not practical to just buy from an American supplier because there isn’t one,” Mr. Helveston said.

U.S. companies that source energy from around North America had a reprieve last month when Mr. Trump lowered the planned tariff on energy imported from Canada to 10 percent, from 25 percent. But the levy will be disruptive nevertheless, particularly for companies that transform oil into fuels like gasoline and diesel. That’s because U.S. refineries were built to run on a mix of the darker, heavier oil found in Canada — and the lighter crude produced domestically.

Refineries in the Midwest are particularly dependent on Canadian oil and, if the tariff takes effect, will have to choose between paying more for oil and cutting production. Analysts generally expect Canadian oil producers and U.S. refiners will share the additional cost burden. Prices at the pump also could rise modestly.

Oil and gas companies are also beginning to feel the effects of the 25 percent tariff on imported steel that Mr. Trump announced last month, even though it will not go into effect until March 12. Prices for products like the steel pipe that companies use to line their wells are already climbing in anticipation of the tariff.

Minho Kim and Paulina Villegas contributed reporting.

The post Industries Brace for Trump Tariffs Taking Effect on Tuesday appeared first on Our Story Insight.