Article Summary –
President Trump has temporarily paused his plan to impose tariffs on imports from Canada and Mexico, which includes a 10% tariff on energy imports like crude oil. Analysts warn that the tariffs, particularly on Canadian imports, could raise gasoline prices in Wisconsin by at least $0.14 per gallon due to the state’s heavy reliance on Canadian crude oil. Historically, gasoline costs less labor for consumers now compared to the past, but if the tariffs are enforced, it could lead to significant price increases, a situation not typically driven by presidential actions.
President Donald Trump has currently halted his plan to impose tariffs on imports from Canada and Mexico to the United States.
The president enacted an executive order for tariffs—10% on energy imports such as crude oil and 25% on all other goods—on February 1. However, he postponed the tariffs for 30 days, leaving the future of these tariffs uncertain.
Analysts warn that tariffs on Canadian imports could significantly impact gasoline prices in Wisconsin if enforced.
Wisconsin’s gasoline supply heavily depends on Canada.
Patrick De Haan, head of petroleum analysis at GasBuddy, predicts gas prices in Wisconsin may rise by at least $0.14 per gallon due to the 10% energy tariff.
“U.S. refiners near Wisconsin primarily use Canadian crude oil,” De Haan explained. “Most gasoline in Wisconsin originates from Canadian-sourced crude oil.”
De Haan highlighted that currently, gasoline costs American consumers less than in previous years.
“The labor required to purchase a gallon of gasoline is at its lowest since 2016,” he noted. “While gas prices are still over $3 a gallon, wage growth has outpaced gas price increases over the past five to ten years, reducing the time needed to afford a full tank.”
He mentioned gasoline hasn’t been more costly, inflation-adjusted, than during 2008’s spikes.
Gas prices reached around $3.29 per gallon in July 2008, according to the U.S. Energy Information Administration, approximating $4.85 today. As of February 2025, Wisconsin’s average gas price is about $2.92, as per the American Automobile Association.
“In terms of the pain index, no year rivals 2008,” De Haan remarked.
The scenario might drastically change if Trump enacts the tariffs.
De Haan pointed out that it’s rare for presidents to take steps directly causing gas price hikes.
“Typically, presidents don’t heavily influence gas prices,” he said. “But the current situation is unique, with the president suggesting high tariffs. While presidents can drive prices up, lowering them is less common.”
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