SOUTHFIELD, Mich. (WXYZ) — We are now just days away from proposed tariffs that could have a significant impact on the economy. President Donald Trump has threatened to slap Canada and Mexico with 25 percent tariffs by February 1st. If those tariffs go into effect, that could increase the cost of goods, including gas prices.
I spoke with Southfield resident Brian Hairston about prices at the pump. He says he worries about the impact of proposed tariffs, and says he feels price are up already. He feels even talks of tariffs by President Trump have impacted prices.
“It was just him talking about before he was elected it made prices go up,” Hairston said.
"Government regulations, tariffs, are something that you and I will end up paying,” said Patrick De Haan, Head of Petroleum Analysis for Gas Buddy.
De Haan says refineries within metro Detroit depend on Canadian crude oil.
“Marathon’s refinery in Detroit, the primary feed stock is Canadian crude oil, as are major refineries in Chicago,” De Haan said.
As far as using our own domestically produced oil, De Haan says refineries would have to figure out how to transport oil from west Texas, where it is largely produced, to our area.
“A lot folks are saying 'well why don’t we just use our own oil', well, we don’t have a way for our oil to get up to the refineries here in the Midwest,” De Haan said.
De Haan says gas prices could go up 30 to 40 cents a gallon in the tariffs are implemented. There is a caveat, the impact tariffs could have on the economy as a whole. Tariffs could slow the economy down.
“On paper, maybe 30 to 40 cents a gallon, but when you consider the economic toll that the tariffs could take, it could be less than that, it could be 15 to 30 cents a gallon,” said De Haan.
While some are showing concern, others feel it could be a step in the right direction, including Fritz Kortz from Beverly Hills.
Kortz said he voted for President Trump, and has faith in any proposed tariffs. He says while he feels there might be a spike in gas prices in the short term, that in the long run, proposed tariffs could help the economy.
“I think our president is shaking things up, and other countries will follow suite, as people can see already on the news, there is a lot of positive, and mostly when people feel positive, they have a positive attitude towards buying,” Kortz said.
De Haan says beyond the tariffs, gas prices will go up soon. Demand for gas tends to increase in the spring, when people want to get out and about post-winter. Gas prices will also be making the switch over to a more expensive summer gasoline blend, which will mean higher prices.
