If the predictions of analysts and fuel traders are accurate, Americans are likely to see higher gasoline prices following President Trump’s decision on Saturday to implement tariffs on Canadian and Mexican oil.
President Trump amitted his move could also result in higher gas and heating costs for Americans, creating something of a doube-edged sword wielded by the White House. The 10% tariff will apply to some 4 million barrels a day of Canadian oil, 70% of which is processed by refiners in the Midwest. Mexico, which will have to pay the full 25% tariff, sends about 450,000 barrels a day to the US and most of it goes to refiners around the U.S. Gulf Coast.
Canada responded by announcing its own tariffs on US goods.
The response might also be felt soon at the gas pumps, according to Patrick De Haan with GasBuddy.
“Expect fuel prices will rise noticeably if oil and refined products are not exempt,” he said.
But the President’s actions were supported by the American Petroleum Institute’s President and CEO Mike Sommers.
“Energy markets are highly integrated, and free and fair trade across our borders is critical for delivering affordable, reliable energy to U.S. consumers. We will continue to work with the Trump administration on full exclusions that protect energy affordability for consumers, expand the nation’s energy advantage and support American jobs.”
Karen Harbert, President and CEO of the American Gas Association also supported the Trump decision.