US gas prices likely to go up with Trump tariffs on Canadian and Mexican oil Tariffs on imports mean higher costs for finishing fuels, much of which is likely to be passed on to consumers.
The developments are set to upend a symbiotic oil trade between the US and its neighbors: many US refineries are geared to churn the type of heavy and medium crude oil grades Canada produces, for example, and Canada’s oil output exceeds its current demand.
US consumers will see higher prices at the gas pump from Donald Trump’s decision on Saturday to apply tariffs on Canadian and Mexican oil, according to analysts and fuel traders.
Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting on Tuesday to address a national emergency over fentanyl and “illegal aliens” entering the US, White House officials said.
Trump had initially planned a 25% tariff on all goods from Canada and Mexico but cut the Canadian oil tariff in an effort to ease the impact on energy prices, the officials said.
