Goldman Sachs said on Friday a proposed 10% U.S. oil tariff could cost foreign producers $10 billion per year, as Canadian and Latin American heavy crudes remain reliant on U.S. refiners due to limited alternative buyers and processing capabilities.

The 10% tariff on oil proposed by Donald Trump in the US could cost foreign producers $10 billion annually. This is due to the reliance of Canadian and Latin American heavy oil on American refineries,

Goldman Sachs also noted that non-tariff barriers, such as import licences and export subsidies, present a complex challenge.