The United States has a significant reliance on Mexico and Canada for crude oil imports, accounting for 70% of the nation’s supply. This oil is a crucial component in the production of gasoline, a key fuel for American vehicles. The U.S. Energy Information Administration, a government agency, notes that the bulk of these imports come from Canada. Canadian crude oil is processed in U.S. refineries specifically designed for this purpose, with the end product being distributed as gasoline for cars and trucks across various regions, including the upper Midwest and parts of the East and West coasts, as highlighted by Fitzgerald.
Fuel prices are subject to frequent adjustments by gas refiners and retailers, who have the ability to change prices multiple times a day. This flexibility in pricing means that some drivers may have already experienced price increases as early as Tuesday, Fitzgerald explained.
Furthermore, experts anticipate a subsequent wave of price hikes across a wide array of products in the coming weeks and months. Many consumer electronics, including laptops, video game systems, and smartphones, are predominantly imported from China. The imposition of new tariffs is expected to translate into higher prices for these goods. Children’s toys, also largely originating from China, are likely to see price increases in the near future, according to Miller.
Some U.S. retailers have reportedly been stockpiling children’s toys in anticipation of the impending tariffs. However, these stored items are projected to deplete soon, leaving consumers facing higher prices. Miller suggested that there might not be much relief beyond April.
In addition to electronics and toys, prices for Mexico-produced beer and tequila are set to rise in the coming months. Similarly, the cost of Canada-made maple syrup is also expected to increase, as highlighted by Miller.
Canada, being a significant source of imported U.S. eggs, adds pressure to an already strained supply chain following an avian flu outbreak. Data from the U.S. Bureau of Labor Statistics indicated a substantial 53% increase in egg prices over the past year. While a potential rise in the cost of Canadian eggs may not significantly impact prices in U.S. stores, given the country’s heavy reliance on domestic egg production, Miller noted that it still presents challenges.
ABC News’ Jacob Eufemia contributed to this report. The impact of Trump’s tariffs on prices is a topic of keen interest and concern, as reported on abcnews.go.com.
