CALGARY — The CEO of Suncor Energy (TSX:SU) says he thinks it’s unlikely that the United States will bring in a border adjustment tax as has been suggested by some Republican lawmakers.
Steve Williams says trade with Canada doesn’t appear to be a major concern for U.S. President Donald Trump, adding that there are policies south of the border such as corporate tax reductions that can benefit Suncor.
He also says the appointment of former ExxonMobil CEO Rex Tillerson as secretary of state is encouraging as he is familiar with the oilsands industry and recognizes that Canadian oil and gas is vital to the American economy.
Williams’s views on the possibility of a border adjustment tax are counter to those of financial analysts who say declining values in Canadian energy stocks since the beginning of the year reflect investor concerns that the industry will be hit hard by such a levy.
The U.S. is Canada’s largest market for oil and gas.
The Canadian Press, 2017