Trump's Tariffs on Canada, Mexico Expected to Drive Up Gas Prices

President Donald Trump has announced a plan to impose 25% tariffs on imports from Canada and Mexico, citing national security concerns related to illegal immigration and drug trafficking. This action is expected to disrupt North America's oil market, potentially raising gasoline prices for American consumers significantly, with analysts predicting increases of 40 to 70 cents per gallon. Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have both condemned the tariffs, suggesting retaliatory measures that could further escalate trade tensions. The tariffs could impact approximately 4 million barrels of Canadian crude oil and 500,000 barrels from Mexico that flow into the U.S. daily, heightening concerns over fuel costs. Additionally, this strategy has prompted discussions among countries such as India and Japan to secure more U.S. LNG as they navigate the potential fallout from these tariffs. Experts warn that such politically-driven trade measures could undermine long-term market confidence in energy exports.