"In 2016, the United States imported approximately 588 thousand barrels per day (m/d) of Mexican crude oil valued at approximately $7.6 billion. Recently, the Trump administration raised the possibility of imposing of a 20% tax, or fee, on imports from Mexico, presumably including imports of crude oil, to provide funding for the construction of a wall along the U.S.-Mexican border. If imposed, a tax on crude oil imports from Mexico could have important implications for the North American oil market. The relative prices of crude oil in the region could be affected enough to create market inefficiencies and change the incentives for related investment, production, and consumption. This Insight does not attempt to analyze a broader 20% border adjustment tax levied on imports from all destinations, nor does it address possible World Trade Organization issues related to this tax proposal."
CRS Insight, IN10650
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html