Trump’s Inauguration Won’t Change the Fact That People Dislike High Gas Prices
After a meeting with President-elect Donald Trump at Mar-a-Lago, Alberta Premier Danielle Smith told reporters that she does not expect Canadian goods to gain any special exemptions from the tariffs Trump plans to levy soon after taking office.
Smith had pitched Trump on exempting Alberta’s crude oil exports from the 25 percent across-the-board tariffs that the incoming president has threatened to impose, the Edmonton Journal reported. Alas, Trump seems unmoved. “I haven’t seen any indication in any of the president’s public commentary or even in the comments that he had with me that he’s inclined to change his approach,” Smith told the paper.
On the American side of the border, it might be helpful for someone to game this out. More than 50 percent of the crude oil imported to the U.S.—the stuff that is used to make gasoline and other essential products—comes from Canada (and much of that total comes from Alberta, specifically).
A new tariff on that crude oil will be passed along to consumers down the supply chain. Among other things, that likely means higher prices at the pump. The specifics remain to be seen, but analysts believe prices could jump by 40 cents or even 70 cents per gallon. If those tariffs spiral into a broader trade war, energy companies are already warning about “volatility in crude oil prices, impacting refineries and downstream fuel markets, especially for gasoline and diesel.”
Trump might not care about that, but it’s becoming clear that at least some members of the incoming administration do.
Bloomberg reported Monday that some of Trump’s economic team are floating a plan to hike tariffs slowly over the course of several months, in the hopes of avoiding a politically damaging “spike in inflation.” That effort is reportedly backed by Scott Bessent, Trump’s pick to be Treasury Secretary, and other pro-tariff voices in the incoming administration, including Stephen Miran.
But, wait a moment. Tariffs cause inflation? That would be news to another Trump e
Article from Reason.com
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