Unfortunately, it looks like higher gas prices might be coming to a gas station near you shortly.
President Donald Trump implemented a 25% tariff on goods imported from Canada and Mexico. However, he did reduce the tariffs on Canadian energy resources (natural gas and oil) to 10%.
These tariffs were going to go into effect already. Then, he changed course, pausing tariffs on all goods under the USMCA, until April 2. Canadian energy is still under a tariff, according to ABC News.
How tariffs influence gas prices
The USA Today reports U.S. refineries import 4.2 million gallons of crude oil from Canada. This is a sizable contribution that could influence gas prices moving forward.
How much will prices increase? It's anyone's guess at the moment, but the safe bet is you'll see an increase soon. When companies have tariffs imposed on them, they turn around and pass some of those additional expenses onto their customers.
As an illustration, Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security, told USA Today gas prices could rise between 20 to 30 cents per gallon in the near future.
This could place gas prices around where they were last year. AAA reports the average gas prices are $3.11 per gallon nationwide. This is still significantly down from a year ago, when the average price per gallon was $3.39.
To anticipate rising costs, here are a few tips that can help you save significantly at the pump:
1. Get a Costco membership
Warehouse clubs like Costco offer excellent discounts on gas. To demonstrate, the Costco near me offers gas at $2.62 for unleaded, while Sheetz, Speedway and Shell's lowest price is $2.69.
You can also double up on savings with the Costco Anywhere Visa® Card by Citi, where you'll earn 5% back on your first $7,000 in fuel or EV charging purchases. That can help you earn up to $350 cash back annually on top of lower gas costs.
And when you sign up for a Costco membership now, you receive a free $20 digital card.
2. Use your Amazon Prime membership
Prime members can save up to $70 annually at the pump. Activate this offer at amazon.com/fuelsavings.
Next, you'll want to sign up for an earnify account and link your Prime membership to it. Upon doing so, you can use the app to locate bp, ampm or Amoco gas stations nearest you, where the discounts apply.
And if you're not a Prime member, you can try it out for free for 30 days.
3. Use apps to find the best prices
Apps like Gas Buddy can help you locate the cheapest prices in town. The app is free to download, is easy to use, and has helped me save hundreds of dollars by finding less expensive gas stations when I travel.
Another perk of the service is you can read users' reviews of gas stations. They might recommend cheaper options nearby, payment methods available at the station or if there's been a skimming issue you want to keep in mind.
4. Take advantage of cash back rewards
Many credit cards come with cash back rewards you can use to lower your fuel costs. If you're a member of Sam's Club, you can apply for the Sam’s Club® Mastercard®. With it, you'll earn 5% cash back on fuel and EV charging expenses on the first $6,000 spent annually, saving you up to $300 per year.
When using credit cards, make sure to pay the balances off in full each month. If not, the interest accrued can eat away at your rewards.
The bottom line
With president Donald Trump imposing tariffs on imported goods from Canada now and Mexico on April 2, it will influence fuel costs moving forward. While it's mostly speculation on how much prices will rise, having a plan in place now can help you save money before gas prices rise.
