A new move by the Trump administration is likely to cause a noticeable hike in gas prices starting this February. The president recently announced significant tariffs on imports from Canada and Mexico, with energy products like crude oil facing a 10% tariff. Since Canada is one of the largest suppliers of crude oil to the U.S., this could directly impact the price of fuel at gas stations across the country.
Why Gas Prices Will Go Up
The U.S. relies heavily on Canadian oil, especially in regions like the Midwest where many refineries process Canadian crude. With the new tariffs, it will cost refineries more to produce gasoline, leading to higher prices for consumers. Analysts predict the average American could see gas prices rise by 10 to 15 cents per gallon. In areas like the Northeast and the Midwest, the increase could be as much as 25 cents.
For example, if you’re currently paying $3.50 per gallon, expect that to jump to around $3.60 or higher. For families that drive frequently, even small increases could make a noticeable dent in their monthly budgets.
It’s Not Just Gas — Other Goods Could Get More Expensive
The impact of the new tariffs won’t be limited to the gas pump. Imports from Canada, Mexico, and China include a range of everyday items, from cars and electronics to groceries and household products. Businesses that rely on imported goods will face higher costs and may pass those costs on to consumers.
In short, you might see the effects of the tariffs not only when you fill up your tank but also when you shop for groceries or buy a new phone.
Retaliation from Canada and Mexico
To make matters more complicated, both Canada and Mexico are considering retaliatory tariffs on American goods. This could further increase prices on items we commonly import and export, creating a ripple effect throughout the economy.
Why the Tariffs Were Introduced
President Trump has defended the tariffs, saying they are necessary to protect American manufacturers and address issues like illegal immigration and drug trafficking. While the administration acknowledges that there may be short-term pain, they argue that the long-term benefits will be worth it.
What You Can Do
For now, it’s important to prepare for higher costs at the gas pump. Consider budgeting for the increases, especially if you have a long commute or plan to travel soon. If possible, look into carpooling or public transportation to offset the added expense.
While we don’t yet know the full extent of the impact, one thing is clear: February could bring higher costs for fuel and other essentials, so it’s best to plan ahead.