Retail gasoline prices in the U.S. are anticipated to rise due to new tariffs imposed by the Trump administration, leading to increased costs for energy imports. The tariffs, including a 25% tariff on Mexican imports, a 10% tariff on Canadian energy, and higher duties on Chinese goods, have already caused a surge in wholesale gasoline prices in the Northeast. Fuel distributor TACenergy predicts a 20 to 40 cents per gallon increase at pumps in New England.

Canadian refiner Irving Oil, a key supplier to the Northeast, has raised fuel prices to account for tariff costs. The company’s refinery in Saint John, New Brunswick, exports a significant portion of its fuels to the Northeast, making it challenging to find alternative suppliers. Inland refiners reliant on Canadian crude may absorb the increased costs or switch to other sources, potentially impacting U.S. benchmark crude futures prices.

Experts suggest that regions heavily dependent on Canadian and Mexican oil imports will experience higher fuel prices soon. The Midwest, which processes a large portion of Canadian oil, could see a 10- to 15-cent price hike. However, the overall impact on pump prices remains uncertain, with various factors such as crude oil prices influencing the final outcome.

Despite opposition from the oil industry, which fears increased costs, the tariffs remain in effect. The ultimate effects on gas prices remain unpredictable, with industry leaders emphasizing the need for a resolution with North American trading partners. Overall, the tariffs could lead to a significant shift in gasoline prices, affecting both consumers and industry players in the energy market.