Trump tariffs could raise fuel prices

Energy & Environment

The Big Story

Trump tariffs could raise fuel prices

President Trump’s tariffs on Mexico and Canada could raise energy prices for U.S. consumers.

On Tuesday, tariffs against both of America’s neighbors took effect. The broader tariffs included a 10 percent levy on Canadian energy and a 25 percent levy on Mexican energy.

While the U.S. imports more oil from Canada than any other country, some U.S. regions are particularly reliant on Canadian oil — and analysts say that consumers in these regions could see price hikes.

Andrew Lipow, of consulting firm Lipow Oil Associates, told The Hill that in the short term, gasoline prices in New England could jump by between 15 and 25 cents per gallon.

He noted that this region imports significant quantities of Canadian gasoline.

The last time it looked like tariffs were about to take effect, GasBuddy’s Patrick De Haan warned that the New England region could also face spikes in the price of heating oil used in homes.

Meanwhile, the Midwest and the Rocky Mountains are also dependent on Canadian oil. Refineries in those locations import significant amounts of Canadian crude that they turn into gasoline.

Lipow said it’s not entirely clear how much of the tariff will fall on consumers in those regions and how much of the costs will be absorbed by Canadian oil companies.

“What is unclear right at the moment is will the tariffs force the Canadian producer to simply reduce the price of their oil to offset the tariff charge,” Lipow said.

Read more at TheHill.com.

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