U.S. Gas Prices Set to Spike as Tariff on Canadian Oil Takes Effect
Americans are already feeling the sting at the gas pump less than 24 hours after the U.S. imposed a 10 per cent tariff on Canadian crude oil, with experts warning of significant price hikes in the coming weeks. Patrick De Haan, head of petroleum analysis at GasBuddy.com, predicts that fuel prices will rise across the U.S., with increases ranging from 20 to 40 cents per gallon by mid-March. The Northeast and Great Lakes regions are expected to be hit the hardest.
The tariff, announced by the White House yesterday, targets over 4 million barrels of Canadian oil imported daily into the U.S. Despite President Donald Trump’s long-standing claims of American energy self-sufficiency, De Haan emphasizes that U.S. refineries cannot easily switch from processing Canadian to American crude. “The infrastructure, pipelines, and specialized equipment have been built over the last 50-plus years to handle Canadian heavy oil,” he explained. “This isn’t something that can be changed overnight.”
The move marks a sharp contrast to Trump’s campaign promises to lower gas prices. Instead, the tariff is expected to have a cascading effect on the U.S. economy, driving up not only fuel costs but also the price of consumer goods as transportation expenses rise.
De Haan dismissed the idea that increased domestic oil production could offset the effects of the tariff, citing the deep integration of U.S. and Canadian energy systems. As Americans brace for higher costs at the pump, the tariff underscores the complexities of the North American energy relationship and the unintended consequences of trade policies on everyday consumers.
