On Wednesday, Frank Fannon, the U.S. assistant secretary of state for energy resources said that the country would not hesitate to impose tariffs on oil imports to the US if the Organization of Petroleum Exporting Countries and its non-member oil producer allies (OPEC+) fail to comply with the output cuts.
Prior to the OPEC+ deal, President Donald Trump had stated that he could impose very substantial tariffs if oil prices stayed low. However, he also said that he did not expect such a measure would be needed since neither Russia nor Saudi Arabia would benefit from low crude prices.
Washington will keep an eye on the deal’s compliance, said Fannon.
Trump’s assessment was challenged by the powerful lobbyist group the American Petroleum Institute (API) as local oil refining companies could also be burdened by the tariffs due to the increasing production cost.
