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NextImg:Trump tariffs expected to raise gas prices, starting in the Northeast - Washington Examiner

President Donald Trump’s tariffs on goods imported from Canada are expected to raise prices for U.S. consumers at the gas pump. 

The effects of Trump’s tariffs on gasoline and diesel prices will be felt across the country, said Patrick De Haan of GasBuddy. Consumers will first see price hikes in the Northeast region, where gas, diesel, and jet fuel prices could increase by around 20 to 40 cents per gallon within the next couple of days, De Haan said. 

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Much of the Northeast, particularly New England, imports much of its refined products, such as propane and gasoline, from Canada, De Haan said. Since the products are refined, they are imported quickly and consumers will likely feel the price increase sooner than would drivers in states importing unrefined oil. 

Trump’s tariffs went into effect Tuesday at midnight, imposing 25% levies on goods from Canada and Mexico and 20% on Chinese goods. Energy imports from Canada face only 10% tariffs. 

The lower levy on energy imports amounts to an admission by the Trump administration that tariffs will raise consumer prices, said Alfredo Carrillo Obregon of the Cato Institute, a libertarian think tank. 

“But what is true is that the tariff is ultimately going to increase the cost, especially of crude oil,” Obregon said, noting that a lot of regions across the country rely on Canadian crude oil. 

The United States imports 6.6 million barrels of crude oil per day on average, with Canada providing 75%.

De Haan said the Midwest and Great Lakes are dependent on Canadian crude oil. Gasoline and diesel prices in the Midwest could rise by 5 to 20 cents per gallon and the Great Lakes could increase by 10 to 25 cents per gallon. 

The tariffs are coming at a time when gasoline prices fluctuate due to the rise of demand, refinery maintenance, and the transition to summer gasoline, De Haan noted. 

“This is the time of year that consumers generally do see rising gas prices,” De Haan said. “It would be very simple to think that gasoline prices only move for one reason at one time.” 

“Even if the tariffs are removed from the calculation, gas prices still will go up,” he said

The Trump administration said it imposed the tariffs as a move to encourage the countries to do more to stop the flow of illegal drugs and immigrants from coming into the U.S. The imposed tariffs took effect one month after Trump agreed to pause them as the countries reached a deal on border security. 

The tariffs have sparked a trade war among the countries. Ontario Premier Doug Ford on Tuesday said the country would look to add a 25% tax on electricity exports, which could impact around 1.5 million homes in Minnesota, Michigan, and New York. 

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“If these tariffs persist, if the Trump administration follows through on any more tariffs, we will immediately apply a 25% surcharge on the electricity we export,” Ford said. “We will not hesitate to shut off their power as well.”

Ford warned that if the Trump administration continues to impose more tariffs, Ontario will cut all electricity exports to those regions.