Irving Oil Warns Customers of Higher Heating Bills Due to Tariffs
Irving Energy, a Canadian company serving New England households and businesses, has notified customers that President Trump's proposed tariffs on Canada will increase their heating bills.
In a letter dated Sunday, Irving Energy stated that the cost of the tariffs would be passed on to customers' contracts. The company noted that the tariffs on Canada, which include a 10% duty on energy imports, would have a significant impact on energy security and the economy.
Impact on New England
New England states are heavily reliant on energy imported from Canada, including heating oil, kerosene, propane, and natural gas. If the tariffs go into effect, it could have a devastating impact on heating costs during the peak winter months.
Senator Susan Collins of Maine emphasized the state's dependence on Canada as a trading partner, stating that 95% of the heating oil used in Maine comes from Canadian refineries.
National Concerns
Economists have long warned that tariffs would ultimately lead to higher prices for American consumers. The National Energy & Fuels Institute estimates that the tariffs could increase heating costs by at least $375 per winter for homes in New Hampshire.
The Center for American Progress Action Fund calculated that the tariffs will cost typical families an additional $1,200 annually. This estimate aligns with findings from the Budget Lab at Yale.
President Trump's Response
President Trump initially vowed that tariffs would not lead to higher prices for consumers. However, he recently acknowledged that Americans may experience "some pain" before economic benefits materialize.
The possibility of increased heating costs has raised concerns among New England residents, as well as economists and business leaders nationwide.