Over the past few months, President Donald Trump has introduced a series of tariffs affecting imports from key trading partners, including Canada, Mexico, and China. While these tariffs have caused anxiety and are likely to affect business conditions, Woodford Oil Company is working proactively to address the situation—not just for our own operations, but for our customers, too.
While the new tariffs aim to address trade imbalances and recalibrate global trade relationships, they have introduced complexities into the energy sector, particularly for propane distributors. Increased costs of imported materials and potential supply chain disruptions could lead to price volatility and logistical challenges obtaining key products.
For Chinese steel imports in particular, the new tariffs are layered and substantial. Baseline tariffs include a 25% Section 232 national security tariff on all steel imports, a 20% fentanyl-related penalty tariff, and an additional 125% trade recalibration tariff—bringing the cumulative effective tariff on many Chinese steel products to approximately 145%. In other cases, specific shipments may face around 76% total tariffs, depending on product type, processing, and shipment details.
How Woodford Is Staying Ahead of the Curve
At Woodford, our decades of experience have taught us the importance of foresight and adaptability. In response to the evolving trade environment, we have taken several measures to help ensure price stability and uninterrupted service to our customers:​
- Proactive Inventory Management: We anticipated the effects of the steel tariffs early and made several strategic decisions. For example, by purchasing a large amount of propane tanks ahead of time, we’ve positioned ourselves to avoid any immediate impacts from rising steel costs, ensuring supply remains steady for our customers.
- Domestic Sourcing of Equipment: Recognizing the risk of tariffs affecting vehicle imports, we pivoted early. We ordered our new fuel delivery trucks from U.S. manufacturers, avoiding potential tariff disruptions and strengthening our supply chain resilience.
- A Customer-first Mindset: Our focus is on helping our customers weather the storm. While there may be some impacts along the way, Woodford is committed to communicating clearly, planning carefully, and maintaining our high level of service dependability.
Tariffs may create uncertainty, but as a customer of Woodford Oil Company, you can be confident that you’re working with a partner who’s ready for whatever comes next.
Have Questions? Woodford Can Help
Woodford Oil Company is your local, one-stop shop for quality motor fuels, commercial- and industrial-grade lubricants, propane, heating oil, specialty products, and unmatched service—24/7.
Contact us with questions about any of our products and services, or request a quote online! Phone: 1-800-927-3688. Email: info@woodfordoil.com. Follow us @facebook.com/woodfordoil and @instagram.com/woodfordoil
