Proposed tariffs on Canadian and Mexican goods by the Trump administration could lead to a significant increase in gas prices for some drivers, potentially by as much as 70 cents per gallon, and higher grocery bills for all. These tariffs, set to take effect on February 1st, would impact a wide range of products, from tomatoes and tequila to auto parts, as both Canada and Mexico are among the US's largest trading partners. While the full price impact remains uncertain, experts warn that businesses may pass on the cost to consumers, leading to increased prices for everyday goods.
and Canada that are set to take effect could hike the price of a gallon of gasoline for some drivers by as much as 70 cents and send grocery bills climbing, experts told ABC News.
The price impact remains unclear, however, since businesses within the supply chain could opt to take on some or all of the tax burden, some experts added, noting the tariffs may not take effect at all since Trump has previously used them as a source of leverage in international negotiations. Those imports come primarily from Canada, which sends crude oil to U.S. refineries built specifically to process the crude and redistribute it as car-ready gasoline, Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry, told ABC News.
The tariff-related price increase may combine with a seasonal price hike set to take effect within weeks, since demand for gas typically grows as travel picks up in the warmer spring weather, experts said.
TARIFFS CANADA MEXICO GAS PRICES GROCERY PRICES TRADE
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