NewBase 03 February 2025 Energy News issue - 1784 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 03 February 2025 No. 1784 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Egypt: Dragon Oil achieves success in exploration drilling at
East Crystal Well in Gulf of Suez
(WAM)
Dragon Oil has announced a significant achievement in its exploration drilling operations with the
successful completion of initial drilling at the “East Crystal” well in the Gulf of Suez, in collaboration
with GUPCO. Initial tests have shown a production rate exceeding 2,000 barrels per day (bpd),
highlighting promising potential for increased output in the region.
Currently, further evaluation is underway using cutting-edge technologies to enhance production
capacity, aiming to reach over 5,000 bpd. This discovery aligns with the Egyptian Ministry of
Petroleum’s strategy to boost domestic production and maximise resource utilisation. Preliminary
estimates suggest that the well holds a potential reserve of 8 million barrels.
Commenting on this achievement, Ali Rashid Al Jarwan, CEO of Dragon Oil, emphasised that these
results demonstrate the effectiveness of modern exploration techniques in revitalising mature fields,
contributing to sustainable production and maximising the utilisation of available oil reserves.
ww.linkedin.com/in/khaled-al-awadi-80201019/

He further stated that these discoveries reinforce Dragon Oil’s commitment to ensuring long-term
production sustainability, in line with the contract duration, while focusing on achieving a high-quality
recovery rate. This, in turn, strengthens the company’s role as a strategic partner in energy security
and domestic production growth.

UAE’s Adnoc Aims to Buy Nova Chemicals, Roll Into Deal With OMV
Bloomberg ,Anthony Di Paola + NewBase Energy
Abu Dhabi National Oil Co. and energy producer OMV AG are considering buying Canada’s Nova
Chemicals Corp. and rolling it into an industry giant they’re seeking to create by merging two
companies in which they have cross shareholdings.
The government-owned company in the United Arab Emirates and the Austrian energy producer
are in “constructive and positive” talks about a merger of two chemical units in which they’re both
partners, Adnoc said in a statement on Saturday. The deal would create a chemical producer
potentially valued at more than $30 billion.
Adnoc and OMV said they’re in talks with the Abu Dhabi sovereign fund Mubadala Investment Co.,
which owns Nova Chemicals, about buying that company. Adnoc and OMV said in separate
statements that they would then roll Nova Chemicals into a combined entity created from the merger
of their two other businesses.
Adnoc and OMV have been in talks for at least 18 months to combine UAE-listed Borouge Plc with
European chemicals producer Borealis AG and create a player in the polyolefin industry. The
transaction would create a €30 billion ($31 billion) chemicals and plastics entity with access to
technology and cheap feedstock.
A deal to buy Nova Chemicals would likely run into the billions of dollars. Adding the company’s
plants in Canada and the US, including one in Louisiana on the Gulf Coast, would give the combined
Borouge-Borealis business a greater North American footprint and access to plentiful natural gas.
Both Adnoc and OMV are pursuing expansion in chemicals and natural gas to feed future energy
demand and supply plastics for consumer products amid the energy transition.

India proposes to open up guarded nuclear sector to private firms
Reuters + NewBase
India on Saturday proposed to amend its nuclear liability law to boost foreign and private
investments in the much-guarded sector, ahead of Prime Minister Narendra Modi's U.S. visit. The
announcement was part of Indian Finance Minister Nirmala Sitharaman's budget on Saturday.
Strict liabilities under
India's Civil Liability for Nuclear Damage Act, 2010, have hampered implementation of the India-
U.S. nuclear deal that envisaged participation of U.S. power plant makers such as General Electric
and Westinghouse.
The White House last week said that the plan for Modi's U.S. visit was discussed when he called
U.S. President Donald Trump.
"For an active partnership with the private sector towards this goal, amendments to the Atomic
Energy Act and the Civil Liability for Nuclear Damage Act will be taken up," Sitharaman said in her
budget speech, without giving more details.
The Atomic Energy Act of 1962 bars private investments in India's nuclear power plants.
"This is definitely a positive in terms of meeting our climate change goals," said Vikram V, Vice
President, Co-Group Head - Corporate Ratings, ICRA Ltd.
"However, clarity would be required on the timelines for amending the Atomic Energy Act including
the civil liability aspect as well as the overall tariff and policy framework for awarding these projects
to the private sector," he said.
Development of at least 100 gigawatts of nuclear energy by 2047 is essential for India's energy
transition efforts, minister Sitharaman said.
Adding 100 GW of nuclear capacity over the next 20 years is "doable and not very ambitious," said
Arun Kumar, an energy expert and a professor at the Indian Institute of Technology, Roorkee.
Unlike conventional nuclear plants, small reactors can be installed in factories or plants from which
they can draw power, he said. India, which currently has about 8 gigawatt of nuclear capacity, aims
to increase it to 20 GW by 2032.
Sitharaman also proposed to set up a Nuclear Energy Mission with an outlay of 200 billion rupees
($2.31 billion) and operate at least five indigenously developed small module nuclear reactors by
2033.
India, which has pledged to achieve a net zero carbon emission target by 2070, last year asked the
states that are away from coal resources to consider setting up nuclear-based power plants.
Last February, India had proposed to partner with private players to develop small nuclear reactors
to boost production of electricity from sources that don't produce carbon dioxide emissions.

U.S: Specter of Trump Tariffs Spurs Interest in US Gas Contracts
(Bloomberg)
President Donald Trump’s high-stakes bid to use natural gas exports as leverage to expand US
influence in Europe and Asia appears to be gaining early traction.
Government officials and energy executives from countries such as India, Kuwait and Japan have
been holding talks about procuring more US gas, according to people with knowledge of the matter.
The strategy, however, carries a significant risk. If Trump levies tariffs against China or other nations
that balk against buying more LNG, he could drive them away from buying from US producers
altogether.
The move to lock in American supply contracts began shortly after Trump’s Nov. 5 election victory,
more than two months ahead of his actual swearing in, said the people, who requested anonymity
discussing private matters.
He has threatened the European Union with tariffs multiple times if the bloc doesn’t purchase more
from the US. Buyers from South Korea to Vietnam are considering procuring more American gas to
avoid crippling trade levies.
“His threat to link EU tariffs to LNG purchases marks a stark departure from market-based
principles,” said Claudio Steuer, a veteran energy consultant. The potential levies shift the US
position on LNG from competitive pricing to “politically-driven trade that could undermine long-term
market confidence,” he said.
Trump’s tactics are pushing away some other buyers, like those in China, the world’s top importer,
said other people aware of ongoing negotiations with US exporters.
Trump, preoccupied with steep US trade deficits, has been clear about his intention to use the
nation’s energy-superpower status to balance the equation. He’s actually reviving a favorite tactic
from his first term that relies on the nation’s vast trove of gas along with the fleet of multibillion-dollar
plants that liquefy the fuel for export.
Since the start of Trump’s first term in 2017, US exports of liquefied natural gas have turned into a
gusher, vaulting the nation to the LNG market’s top rank. By 2030, roughly one of every three LNG
shipments worldwide will originate in the US.

The American LNG boom comes at a time when the world’s appetite for gas has never been more
ferocious. Demand for the fuel used in several industries including power production, heating and
fertilizer manufacturing, is at an all-time high, fed in no small part by aspirations to shift away from
dirtier coal. Gas consumption could rise as much as 12% by the end of the decade, according to
the Oxford Institute for Energy Studies.
But despite American dominance of global LNG flows, Trump’s threats to use tariffs to cajole export
deals may prove more complicated to execute than his recent arm-twisting of Colombian President
Gustavo Petro, who caved to tariff threats within hours and agreed to accept repatriated migrants.
US LNG is usually sold via long-term contracts from ports, where the fuel is picked up and
essentially delivered to the highest bidders in Europe or Asia.
“The US administration lacks direct control over LNG volumes and cargo destinations — a crucial
limitation given that buyers, not sellers, determine final delivery points,” said Steuer.
Instead, importers desperate to appeal to Trump could sign long-term purchase agreements with
developers of yet-to-be-built US LNG complexes, or invest directly in such projects. This would
provide a shot in the arm for the host of proposed plants vying to secure buyer commitments and
financial backers.
One of Trump’s first acts of his second term was lifting a moratorium on new approvals for LNG
terminals implemented in the final year of former President Joe Biden’s term.
“What I’d like to see is rapid approvals,” Trump said during the World Economic Forum in Davos,
Switzerland, a few days after his inauguration. “We’re going to get very rapid approvals in the United
States.”
“Trump would be happy if Japan could show that they are buying more from the United States,”
Mieko Nakabayashi, a professor at Waseda University and a former lawmaker, said on a Fuji TV
program. “There is really no minus for Japan.”

As the world’s second largest LNG buyer, Japan sourced about 10% of its supplies from the US last
year. Japan’s Prime Minister Shigeru Ishiba said in parliament on Friday he would ask Trump for a
stable supply of energy when they meet early next month.
For a resource-scant nation like Japan, imports from the US are “positive in terms of security,” said
Naohiro Maekawa, executive officer and head of the financial strategy and planning division at the
country’s top utility Jera Co. That said, the company will make sure the supply sources in its portfolio
are diversified, he added.
“We don’t think it’s good to
have our LNG portfolio
concentrated in one
supply source. We think
it’s good to have a balance
between three to four
areas,” like Australia, the
Middle East and Malaysia,
Maekawa said during an
earnings press
conference in Tokyo on
Friday.
Few other countries are
able to unleash as much
gas onto global markets as the US. Russia’s aspirations to expand LNG exports have been upended
by Biden-era sanctions while new competitors from Mozambique to Papua New Guinea have been
slow to mature.
Qatar, the world’s second largest LNG exporter after the US, aims to boost production by more than
80% through 2030. However, the emirate’s supplies are less flexible than those from US shale fields
— a problem for countries uncertain about future demand amid the shift to the cleaner energy
sources. And while Qatar is renowned for its reliability, its energy minister recently warned that
Europe’s cross-border climate rules risked supply to the region.
US LNG exports are slated to grow to roughly 200 million metric tons per year by 2030, up from
about 93 million, according to a forecast from BloombergNEF. That estimate may prove
conservative if the Trump administration successfully prompts Asian or European importers to sign
long-term deals.
“We are ready to buy more natural gas,” Uniper SE Chief Executive Officer Michael Lewis said
during a panel at Davos. Germany began directly importing LNG in 2022 following the loss of
Russian pipeline gas, with US supplies making up 92% of total seaborne deliveries last year.
US Secretary of State Marco Rubio has said LNG should be used as “leverage” in talks with China.
In bilateral talks over the weekend, Rubio encouraged Vietnam to address trade imbalances. The
Asian country’s government had already said it would look to buy more US gas to not only avoid
tariffs but also meet rising energy requirements.
Still, turning LNG into a political cudgel threatens to erode long-term market confidence in US
reliability, Steuer said.
A stronger reliance on the US could mean “a form of blackmail that we had in Russia is being
repeated,” warned German Economy Minister Robert Habeck. Europe should “meet the Trump
administration with an outstretched hand, but not have our hand cut off.”

NewBase February 03 -2025 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices jump on supply disruption fears from US tariffs
(Reuters)+ NewBase Energy
Oil prices jumped on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico
and China, raising fears of crude supply disruption from two of the biggest suppliers to the U.S., but
the prospect of lower fuel demand capped gains.
U.S. West Texas Intermediate crude futures were at $73.97 a barrel, up $1.44, or 2%, by 0042
GMT, after hitting more than a week's high at $75.18 a barrel earlier in the session. Brent crude
futures rose 62 cents, or 0.8%, to $76.29 a barrel, after touching a high of $77.34.
Trump on Saturday ordered sweeping tariffs on goods from Mexico, Canada and China, kicking off
a trade war that could dent global growth and reignite inflation.
Energy products from Canada will have only a 10% duty, but Mexican energy imports will be
charged the full 25%, White House officials said.
Oil price special
coverage
 US to tax oil imports from Canada at 10%
 Mexican energy imports to US to be charged 25%
 Canada, Mexico account for 1/4 of US crude imports - EIA
 OPEC+ unlikely to alter plans to gradually unwind cuts - sources

"The relatively soft stance on Canadian energy imports is likely rooted in caution," Barclays analyst
Amarpreet Singh said in a note.
"Tariffs on Canadian energy imports would likely be more disruptive for domestic energy markets
than those on Mexican imports and might even be counterproductive to one of the president's key
objectives - lowering energy costs."
Canada and Mexico are the top sources of U.S. crude imports, together accounting for about a
quarter of the oil U.S. refiners process into fuels such as gasoline and heating oil, according to the
U.S. Department of Energy.
00:18Renewables group Orsted replaces CEO as offshore wind industry struggles
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The tariffs will raise costs for the heavier crude grades U.S. refineries need for optimum production,
industry sources said, cutting their profitability and potentially forcing production cuts.
U.S. gasoline futures jumped 2.6% to $2.1128 a gallon after hitting $2.162 earlier, the highest
since Jan. 16.
The tariffs are bullish for near-term oil prices due to supply disruption risks, especially for heavier
grades, said Saul Kavonic, an energy analyst at MST Marquee.
However, oil prices may fall beyond the next quarter as tariffs cause the demand outlook to
deteriorate further and as OPEC+ has come under more pressure from Trump to unwind production
cuts, he added.
The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+,
is unlikely to alter existing plans to raise output gradually when it meets on Monday, delegates from
the producer group told Reuters, despite the pressure from Trump.

 Hawk Energy Sees Oil at averaging $70-$80 This Year with positive Growth
 That’s a ‘foreseeable & sensible range,’ Hawk Energy CEO M. Al Shihabi says
 Demand set to grow to from 103.8 to 105.0 MBD MBD, in 2025: Al Awadhi says

NewBase Special Coverage
The Energy world – February 03 -2025
CLEAN ENERGY
China, Canada and Mexico vow swift response to Trump tariffs
Jessica Murphy, Will Grant & Michael Race ,BBC News
Trump had threatened to impose major tariffs upon taking office , Canada, Mexico and China have
vowed to respond to sweeping new tariffs to their exports to the US announced by President Donald
Trump.
Trump said a levy of 25% on Canadian and Mexican imports as well as an additional 10% tax on
Chinese goods would come into force on Tuesday. Canadian energy faces a lower 10% tariff.
The US president said the move was in response to his concerns about illegal immigration and drug
trafficking - two of the main promises on which he was elected.
In response, both Canada and Mexico said they were preparing similar tariffs on US goods, while
China added it would take "necessary countermeasures to defend its legitimate rights and interests".
The implementation of tariffs and the subsequent retaliation could mark the start of a new era of
global trade wars.
Economists have warned the introduction of the import taxes by the US, and the responses from
other countries, could lead to prices rising on a wide range of products, from cars, lumber, and steel
to food and alcohol.
Consumers in all countries could see an increase in the cost of living if businesses decide to pass
on higher costs to customers, with US industry groups already raising the alarm.
But Trump has indicated he is ready to escalate the duties further if the countries retaliate.
"Today's tariff announcement is necessary to hold China, Mexico, and Canada accountable for their
promises to halt the flood of poisonous drugs into the United States," the White House said in a
statement on X on Saturday.
Trump posted on his Truth Social platform: "This was done through the International Emergency
Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing
our Citizens, including fentanyl."
A tariff is a domestic tax levied on goods as they enter the country, proportional to the value of the
import. They are a central part of Trump's economic vision.

He sees them as a way of growing the US economy, protecting jobs and raising tax revenue - and
in this case, pushing for policy action.
Together, China, Mexico and Canada accounted for more than 40% of imports into the US last year.
Canada, Mexico and the US have deeply integrated economies, with an estimated $2bn (£1.6bn)
worth of manufactured goods crossing the borders daily.
In its announcement, the White House accused Mexico's government of having "an intolerable
alliance" with Mexican drug trafficking organisations.
In her response, Mexican President Claudia Sheinbaum called allegations that the Mexican
government had alliances with criminal organisations "slander".
Sheinbaum called on the US to do more to clamp down on the illegal flow of guns south to arm the
cartels.
Her country is willing to work with the US, she said. "Problems are not resolved by imposing tariffs,
but by talking."
She instructed her economy minister to respond with tariff and non-tariff measures, which are
expected to include retaliatory tariffs of 25% on US goods into Mexico.
Canada has already announced retaliatory tariffs against the US, with Canadian Prime Minister
Justin Trudeau matching the 25% imposed on his country.
He set out "far-reaching" tariffs would affect 155bn Canadian dollars' worth ($106.6bn; £86bn) of
American goods ranging from beer and wine, to household appliances and sporting goods.
Non-tariff measures being considered are related to critical minerals and procurement, although
Trudeau did not offer more detail.
"We don't want to be here, we didn't ask for this," he said. "But we will not back down in standing
up for Canadians."
The Canadian prime minister pushed back on the suggestion the shared border posed a security
concern, saying less than 1% of fentanyl going into the US comes from Canada. He also added less
than 1% of illegal migrants entered the US through the border.
Canada is America's largest foreign supplier of crude oil. According to the most recent official trade
figures, 61% of oil imported into the US between January and November last year came from
Canada.

China said it "firmly opposes" the tariffs, but has not yet announced any retaliatory measures. The
10% tax on its imports to the US will be added over and above tariffs already imposed on China by
Trump in his first term and by President Joe Biden.
"Trade and tariff wars have no winners," said a spokesperson at China's Washington embassy.
Trump has acknowledged there could be "some temporary, short-term disruption" a as a result of
tariffs.
The car manufacturing sector could be especially hard hit. Parts cross the US, Canadian and
Mexican borders multiple times before a final vehicle is assembled.
TD Economics suggested the import taxes could push up the average US car price by around
$3,000, while the National Homebuilders Association said housing costs could increase.
The Canadian Chamber of Commerce said the levies would have "immediate and direct
consequences on Canadian and American livelihoods" and will "drastically increase the cost of
everything for everyone".
The Farmers for Free Trade said with many US farmers already struggling, "adding tariffs to the mix
would only exacerbate the situation across much of rural America".
But the US Retail Industry Leaders Association, which includes big names such as Home Depot,
Target and Walgreens among its more than 200 members, expressed hope tariffs could still be
averted.
The White House, explaining on Saturday why it was targeting its top trading partners, said Mexican
cartels were responsible for trafficking fentanyl, methamphetamine and other drugs.
It said tariffs on Canada would remain until it "co-operates with the US against drug traffickers and
on border security".
Lastly, it said "China plays the central role in the fentanyl crisis" with exports of the lethal synthetic
painkiller.
Both the northern and southern US borders have reported drug seizures, though amounts at the
border with Canada are considerably lower than those with Mexico, according to official data.

US border agents seized 43lbs (19.5kg) of fentanyl at the northern border between October 2023
and last September, compared to more than 21,000lbs (9,525.4kg) at the southern border.
Still, recent reports from Canadian intelligence agencies suggest a growing number of transnational
organised crime groups are manufacturing drugs in Canada.
Ashley Davis, a Republican lobbyist for businesses, who represents major US companies, including
Walmart and Boeing, and has been involved in discussions about tariffs, told the BBC's World
Business Report she thought Trump would pull back on the tariffs in North America if he could point
to progress on the issues he has raised as complaints – especially immigration.
"You have to remember – the border and China are the two biggest issues that Americans voted
him on in the elections in November. Anything he can do to claim wins on that, I think he's going to
do," she said.
Here’s what will get more expensive from Trump’s tariffs on Mexico, Canada and China
President Donald Trump made good on his promise to impose steep tariffs on America’s three
largest trading partners — Canada, China and Mexico — citing a national emergency on the flow of
fentanyl and undocumented immigrants into the United States.
The action, which is expected to take effect on Tuesday, includes a 25% duty on all imports from
Mexico and most goods from Canada (there’s a 10% carve-out for energy-related items such as
crude oil), and an additional 10% tariff on Chinese goods imported into the United States.
Trump has used and promised to employ tariffs for three primary purposes: to raise revenue, to
bring trade into balance and to bring rival countries to the negotiating table.
However, economists warn that these moves negatively impact American businesses and
consumers, many of whom are still reeling from the sharp rise in inflation in recent years.
Tractor trailers wait in line at the Ysleta-Zaragoza International Bridge port of entry on the US-Mexico border
in Juarez, Chihuahua state, Mexico, on December 20, 2024.

The US Chamber of Commerce warned Saturday that tariffs won’t solve the yearslong issues at the
borders and instead threaten to “upend supply chains” and raise prices for American families.
“Consumers are going to be clearly worse off,” Sung Won Sohn, professor of finance and economics
at Loyola Marymount University and chief economist at SS Economics, told CNN on Saturday.
“When you talk about a tariff, it’s an economic war; and in war, everybody loses,” he added. “But
hopefully we will come to some better results and conclusions as a result of the pain and suffering
that we will go through.”
About one-third of US imports come from the three countries Trump targeted Saturday. Their
products are among some of the most commonplace and critical items used by Americans, including
fruits and vegetables, meat, gas, automobiles, electronics, toys, clothing, lumber, and beer and
spirits.
Food
Mexico and Canada supply a significant share of several key food categories. For example, Mexico
is the largest supplier of fruit and vegetables to the US, while Canada leads in exports of grain,
livestock and meats, poultry and more.
Agricultural products from Mexico and Canada, in particular, could become more expensive for
consumers, as grocery retailers operate on thinner profit margins than most industries. With little
room to absorb higher tariff costs, the grocers may have to pass them on to shoppers.
Although the US typically exports more agricultural goods than it imports, the value of imports has
increased faster than that of exports in the past decade, according to the US Department of
Agriculture. Additionally, climate change has increased US reliance on countries like Mexico,
where growing conditions are more favorable.
Last year, the US imported $46 billion of agricultural products from Mexico, according to USDA data.
That includes $8.3 billion worth of fresh vegetables, $5.9 billion of beer and $5 billion of distilled
spirits.
But the biggest category of agricultural imports from Mexico last year was fresh fruits, of which the
US imported $9 billion worth, with avocados accounting for $3.1 billion of that total.

Fuel and energy
The US imported $97 billion worth of oil and gas from Canada last year, that country’s top export to
the US. The US has become more reliant on Canadian oil since the expansion of Canada’s Trans
Mountain pipeline, according to data from the US Energy Information Administration.
The tariff on Canadian energy products is only 10%, not the 25% tariff announced on other Canadian
exports.
That’ll limit the impact on gasoline prices, said Tom Kloza, global head of energy analysis for OPIS.
An oil pump jack works on the prairies near Claresholm, Alberta, Canada, on January 18.
Another factor is the time of year. Gas prices are typically near a low for the year in February due
to weak demand. If the tariffs stay in place through summer, the impact will be greater, he said.
And while the impact isn’t expected to be felt equally nationwide, it likely will hit America’s Heartland
the hardest.
Most Canadian oil is shipped to Midwest refineries via pipeline, Kloza said. The states most likely
to be affected are Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri,
Montana, Nebraska, North Dakota, Ohio, Pennsylvania, South Dakota and Wisconsin, he said.
“Interestingly, 12 of those 16 states begin February with an average retail gasoline price under $3
a gallon,” he said. “That probably won’t last.”

Cars and car parts
The US imported $87 billion worth of motor vehicles and $64 billion worth of vehicle parts from
Mexico last year, not accounting for December, the top two goods imported from there that year,
according to Commerce Department data. (December trade data is due out next week.)
Motor vehicles were also the second-largest good the US imported from Canada last year through
November, for a total of $34 billion.
The auto sector is likely “apoplectic” about the new potential tariffs, said Mary Lovely, a senior fellow
at the Peterson Institute for International Economics. US car companies have been able to keep
production costs down by hiring lower-wage workers, particularly in Mexico, where much of their
production has shifted to in recent years.
But that cost saving will essentially be erased if there’s a 25% tariff, she said. Car manufacturers
are unlikely to move their production elsewhere, given they’ve made sizable investments in existing
plants in both countries and it is difficult to source all the raw materials to build cars and their parts
from other places.
Steel
While the United States is not the manufacturing-focused economy it once was, it still consumes
tens of millions of tons of steel a year, feeding industries such as automaking, oil production,
construction and infrastructure.
Canada and Mexico are the largest and third-largest exporters of steel to the United States,
respectively. In his first term, President Trump imposed tariffs of 25% on steel imports from most
nations worldwide effective June 2018. But Mexico and Canada, under their free trade deals with
the United States, were exempt from those tariffs.

Canada now accounts for nearly a quarter of steel imported by American businesses by weight,
while Mexico accounts for about 12%, according to government data provided by the American Iron
and Steel Institute, an industry trade group.
However, there is empirical evidence showing that the 2018 tariffs on steel and aluminum did raise
prices, Won Sohn said, noting a 2020 Federal Reserve study that found an increase in producer
prices, which eventually were passed along to consumers.
Beer and alcohol
Beer and liquor may be recession-proof, but they’re certainly not tariff-proof.
The result would be a stiff penalty on some of America’s favorite libations, including tequila, which
can be made only in Mexico and the No. 1 beer brand in the nation, Modelo.
Constellation Brands, which imports Modelo and Corona beer as well as Casa Noble tequila from
Mexico, could see its costs leap 16% under Trump’s proposed tariff and would likely have to raise
prices by about 4.5%, Chris Carey, a Wells Fargo equity analyst, wrote in a November note.
In 2023, the US imported $5.69 billion of beer and $4.81 billion of alcohol from Mexico, according
to International Trade Administration data. When combined, the two categories were the 10th-
biggest import from Mexico last year and mark a sharp 126% increase from 2017, International
Trade Administration data shows.
While the tariffs could cause further increases in key materials (such as steel, aluminum and grain)
for US beer and spirits businesses, the industry is also bracing for the potential of retaliatory tariffs.
Home construction and furniture
Softwood lumber, which is sourced from the likes of pine, spruce, firs and other conifers is prized
for its light weight, workability and strength.
As such, its applications are vast, but it’s a critical ingredient in the US homebuilding industry:
Commonly, the skeleton and skin of homes — the framing, roof and siding — consist of softwood
lumber.
And 30% of what the US uses annually comes from Canada.
Economists and homebuilders caution that America does not currently have the industrial capacity
to meet the demand and that taxing — or worse, cutting off — Canadian lumber imports could further
exacerbate the ongoing housing affordability crisis.
“Whether it’s lumber tariffs or tariffs on any other import, these can impact the supply chain,” said
Nick Erickson, senior director of housing policy for Housing First Minnesota, a trade organization
that represents builders, remodelers and other businesses in the North Star State. “And we’ve seen
in the past that tariffs on lumber, these are paid for by new homebuyers in the cost of their home.”

Mike Blake/Reuters
And it’s not just lumber at risk for tariffs: 71% of the imported $456 million of lime and gypsum (which
are used for drywall) came from Mexico in 2023, according to the National Association of Home
Builders.
Factoring in the other raw materials and components imported from Canada, Mexico, as well as
China (notably the steel, aluminum and home appliances already subject to tariffs), Trump’s new
tariffs could raise the cost of imported construction materials by $3 billion to $4 billion, the NAHB
noted.
Electronics, toys, appliances
Consumer electronics are among the top goods the US imported from China last year, according to
federal trade data. That includes cellphones, TVs, laptops, video game consoles, monitors and all
the components that power them.
China also is a major supplier of home appliances. Those along with toys and footwear are
particularly exposed to Trump’s tariff threats.
A staggering 99% of shoes sold in the United States are imported, according to the Footwear
Distributors & Retailers of America, a trade group that represents Nike, Steve Madden, Cole Haan
and other footwear brands.
More than half (56%) of shoes sold in the United States are made in China, the trade group said.
The United States is also reliant on China for toys and sporting equipment, including items such as
footballs, soccer balls and baseballs. The United States gets 75% of its imported toys and sports
equipment from China.

NewBase Energy News 03- February - Issue No. 1784 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self-leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energies
program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time,
see contact details above.

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