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 percent tariff the president said he might impose in March could cause U.S. refineries to cut production and lead to higher prices.

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,