The Impact of Trump’s Tariffs on Gasoline Prices
According to Tom Kloza, global head of energy analysis for OPIS, the new tariffs imposed by President Donald Trump on Canadian energy products will have a limited impact on gasoline prices. The 10% tariff on Canadian energy products is a relatively small factor compared to other Canadian imports which are subject to a 25% tariff.
Additionally, Kloza notes that gas prices tend to be near a low point for the year in February due to weak demand. However, if the tariffs remain in place through the summer, the impact will grow. Kloza states that the impact will be “inflationary, but not as inflationary as it would be in April, May or June.”
The impact of the tariffs will not be felt evenly across the country, as most Canadian oil is shipped to Midwest refineries via pipeline. As a result, the states most likely to be affected are those in the Midwest and surrounding regions. Interestingly, 12 of the 16 states most affected begin February with an average retail gasoline price under $3 a gallon, but this is unlikely to last if the tariffs continue.
