By Alana Nadir
The energy industry was marked safe from sweeping tariffs announced this week by U.S. President Donald Trump. Trump imposed tariffs on goods entering the country’s market, with the notable exclusion of energy products like oil, gas and certain minerals like gold which is exported by Guyana.
The announcement was made via a White House statement released on April 2.
“The following goods as set forth in annex II to this order, consistent with law, shall not be subject to the ad valorem rates of duty under this order:… other products enumerated in annex II to this order, including copper, pharmaceuticals, semiconductors, lumber articles, certain critical minerals, and energy and energy products.” the WH release stated.
For Guyana, this means that oil sales to the US are likely to continue their upward trend, evident over the past four years. The US has been an importer of the South American nation’s sweet crude since 2020.
According to records from the U.S Energy Information Administration, 2024 was Guyana’s best year yet for oil exports to the US. A total of 64,356 barrels of oil were sold on the US market, indicating a 44.5% increase from 2023.
Data Sheet showing the amount of barrels of oil exported to the United States from 2020 to 2024. Source: U.S Energy Information Administration
Guyana oil exports to generate US$16.8 billion in 2024
While the oil market has been marked safe, President Trump slapped tariffs ranging from a baseline 10% to a massive 50% on goods imported into the US from countries around the globe, including Guyana. A whopping 38% was placed on Guyanese goods.
“In a few moments, I will sign a historic executive order instituting reciprocal tariffs on countries throughout the world. Reciprocal meaning they do it to us, we do it to them… The numbers are so disproportionate. They’re so unfair. At the same time we will establish a baseline tariff of 10%… That’ll be on other countries to help rebuild our economy… foreign nations will be finally asked to pay for the privilege of access to our market. The biggest market in the world,” Trump stated.
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Countries like Mexico and Canada who are key oil exporters to the US were not included on Wednesday’s list of countries for the reciprocal tariffs. The 25% imposed on both countries earlier this year will remain. Other major oil exporters to the US like Brazil, Saudi Arabia, and Ecuador will be required to pay the baseline 10%, while Iraq is expected to pay 39%. None of which applies to oil exports.
Wednesday’s WH release stated, “ However, all goods of Canada or Mexico that do not qualify as originating under [United States-Mexico – Canada] USMCA are presently subject to additional ad valorem duties of 25 percent, with energy or energy resources and potash imported from Canada and not qualifying as originating under USMCA presently subject to the lower additional ad valorem duty of 10 percent.”
