New trade proposals under the incoming Donald Trump administration aimed at encouraging production of U.S.-made goods could push domestic oil prices higher and raise prices at the pump, the WSJ’s Alison Sider and Gunjan Banerji report. The plan, called “border adjustment, would be part of a big overhaul of corporate taxes, and it would levy charges on imports while exempting exports from taxes. Oil analysts believe the tax plan could be behind a recent jump in the volume of options trading. The tax plan would have a far-reaching impact on American businesses, and retailers that depend on imports are girding to minimize the hit on their goods. Refiners that make fuels like gasoline and diesel could end up paying higher prices for domestic crude, and one study concludes that retail gasoline taxes could rise by as much as 36 cents a gallon under the plan.
December 23, 2016