Q: In an answer to Terry this morning on industries that are vulnerable to tariffs 5i put pipelines as the second most vulnerable . When I asked the same question about the stocks in my portfolio's vulnerability, 5i said about ENB ....." ENB may not be impacted much and in fact is planning on expanding pipeline operations if there is a surge in US drilling under Trump. " ....Could you please clarify ? If I'm vulnerable ENB is going to be sold ..... Thanks for your terrific service .......
5i Research Answer:
Sorry for the confusion. We did not expect oil to be tariffed, really, and its rate was reduced to 10%. But the fact that Trump was still willing to go there is more concerning than it was last week. We would not see ENB as a sell today. The sector in general may see a reduction in spending, and it is hard to envision a lot of new pipelines if tariffs do remain in place a long time. This could change the long term growth plans of some companies in the sector. But we do not see the tariffs on oil sticking, but there has been a bit of a shift in attitude with the weekend's announcements. Keep in mind also that both reality and our rankings are going to be moving targets for a period of time.