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Trump’s Tariff Threats on Canadian Oil Could Raise Gas Prices in Key U.S. Regions, Analyst Says

Gas prices in the Midwest, Rockies, and Great Lakes may rise if U.S. imposes tariffs on Canadian oil, warns Gas Buddy’s Patrick De Haan.

Canadian oil

Americans in the Midwest, Rockies, and Great Lakes regions should prepare for potential gas price increases if the U.S. imposes tariffs on Canadian oil, according to energy expert Patrick De Haan.

De Haan, who leads petroleum analysis at Gas Buddy, explained to FOX Business that the impact could be significant, especially for drivers in the Great Lakes. “Gas prices in these areas could rise by more than $0.20 per gallon due to the disruption of Canadian oil supplies,” De Haan said. “A large portion of Canadian oil flows directly to the Great Lakes, Midwest, and Rocky Mountain regions, making it tough to find alternative sources.”

While the price of Canadian oil has already dropped to around $60 a barrel, De Haan warned that the tariffs would still affect gas prices in these areas. “Even with lower oil prices in Canada, tariffs on Canadian oil would likely push prices higher for motorists in the Midwest, Rockies, and Great Lakes.”

The Northeast U.S., which depends on Canadian refineries like those in St. John and Irving, could also face rising fuel costs. “If tariffs are imposed, it could affect refined products like diesel, jet fuel, and gasoline,” De Haan added. “Though these products are refined in Canada, they are still essential to the Northeast, and higher costs could spread to other regions.”

President Donald Trump has previously threatened to impose a 25% tariff on Canadian and Mexican oil unless both countries take action against illegal immigration and the flow of fentanyl into the U.S. On Tuesday, White House spokesperson Karoline Leavitt confirmed that the tariffs would go into effect on February 1.

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