Get ready to pay a bit more at the pump. New tariffs on imports from Canada could bump up gas prices by around 15 cents a gallon in the next week. While that’s not the steepest hike we’ve seen, it’s still something drivers will notice.
The tariffs, announced over the weekend by the Trump administration, were set to take effect on Tuesday for goods arriving from Canada and Mexico. However, on Monday, the president put the Mexican tariffs on hold after a call with Mexico’s leader. The move aims to hit a range of imports, from cars to lumber, but energy products like gasoline are likely to feel the impact first.
Here’s the kicker: the tariff on energy imports is only 10%, compared to the 25% slapped on other goods. Experts say this lower rate was chosen to soften the blow for American consumers, as higher prices for gas and heating oil could hit wallets hard right now. Still, wholesale gas prices were already up 8 cents a gallon on Monday, and analysts predict more increases are on the way.
The average price for a gallon of gas was about $3.10 as of Monday, according to AAA. Diesel prices also climbed by 10 cents, which could lead to higher shipping costs—and, eventually, pricier goods in stores since almost everything we buy travels by truck at some point.
Canada is the biggest source of imported oil and gas for the US, so it’s been the main focus of this tariff shift. Mexico, which also exports significant amounts of oil and gas to the US, could see its tariffs take effect later, potentially adding more pressure to prices.
The good news? Some Canadian oil producers have limited options for where to send their products, which might keep them from passing the full cost of the tariffs onto US customers. But don’t expect to dodge the impact entirely—some of those extra costs will still land on consumers.
If the tariffs stick around through the summer, the effects could get even worse, especially as demand for gas typically peaks during warmer months. For now, though, the timing might be on our side—February is usually a low point for gas prices due to weaker demand.
So, while the hike might not be astronomical, it’s still something to keep an eye on if you’re planning a road trip or just trying to save at the pump.