US President Donald Trump has imposed tariffs on Canadian and Mexican oil, which will lead to higher prices at the gas pump for American consumers. The 10% tariff on Canadian oil and 25% tariff on Mexican oil will increase costs for refineries to produce finished fuels like gasoline.
The US imports around 4 million barrels of Canadian oil per day, with 70% processed by refiners in the Midwest. Mexico provides over 450,000 barrels per day, mainly for refiners along the US Gulf Coast. The tariffs will likely be passed on to consumers, with fuel prices expected to rise noticeably.
Analysts predict that East Coast drivers may also feel the impact of higher gas prices due to reduced refining capacity and limited supply options. Companies involved in the wholesale fuel market have expressed concerns about the added cost being passed on to consumers.
“We’re in a kind of hand-to-mouth situation here,” said Alex Ryan, energy director at Kansas-based Oasis Energy. “Whatever the cost is, ultimately it ends up in the consumer’s lap.”
The tariffs are set to raise costs for refineries and fuel producers, leading to higher prices for American consumers.
Source: https://www.reuters.com/business/energy/pump-prices-set-rise-trump-tariffs-hit-canadian-mexican-oil-2025-02-01