Double Whammy: Trade War Raises Cost of Doing Business & Shrinks Market for Oil Companies in ND and Beyond

We want them to understand that the tariffs have a negative impact on US oil and gas industry. […] You can’t be promoting and maximising the production of energy while also imposing tariffs

(BISMARCK, ND) – The president’s trade war could have unintended consequences for North Dakota’s oil industry, undermining yet another key industry in the Peace Garden State. With the state’s farmers bracing for a painful year and businesses statewide already feeling the pressure, North Dakota’s oil industry appears to be next on the chopping block. Unfortunately for the state’s many energy producers, the effects could be twofold.

Companies in the Bakken rely heavily on imported metals – with the president applying tariffs on imported steel from Canada, Mexico, and the European Union, the cost of doing business could soon be going up.

On top of that, American oil producers are fearful of losing business in one of the fastest growing markets in the world, as oil exports to China – currently totaling nearly $1 billion per month – appear to be the next in line for retribution in administration’s escalating trade war. This “tit-for-tat petroleum diplomacy” could make American oil less competitive than oil from Russia and the Middle East, bringing down profitability for American companies.

Rather than fighting for North Dakota’s most important industries, Kevin Cramer has been fully supportive of the president’s dangerous and misguided trade policies. Making matters worse for Cramer, his finance chair and the reason he decided to run for Senate, Harold Hamm, had to pull out of a meeting with OPEC in the days after China promised retaliation on U.S. oil products.

“From farmers, manufacturers, and energy producers, Kevin Cramer’s support for the administration’s trade war is hitting all sides of North Dakota’s economy,” said Scott McNeil, Executive Director of the North Dakota Democratic-NPL. “Even as our top industries come under fire, Cramer continues to cheerlead a trade war. North Dakotans are already hurting from these policies, but Crooked Cramer continues to double down – but North Dakotans won’t forget that he stood for himself and against North Dakota’s economic interests in November.”