Tariffs will shoot fuel price in the US: analysts

The imposition of 25 percent tariffs on Mexican and Canadian exports by the United States government, announced by President Donald Trump from February, will be translated, in case of completing, in an alteration of supply chains, distortions in the Commercial flows, as well as an increase in prices for consumers, in particular, those related to gasoline and diesel, according to specialists.

An article by Ian Bremmer, president of Eurasia Group, a leading consulting and research company of political risks world The United States will suffer effects, but mainly lower income citizens. ”

He pointed out that the United States trade deficit would not be significantly reduced and lost jobs will be recovered in the manufacturing sector.

Bremmer explains that while Trump, advised by billionaires, points out that in his mandate his country will live a new golden age, it will not really be so.

He recalled that the president, who assumed the position on January 20, seeks Correct unfair practices by imposing tariffs, in particular China.

The expert considered that these measures will cause the Asian giant to take reprisals, the commercial relationship is deteriorated and this in turn will harm consumers by the increase in imported goods and supplies.

Bremmer considered that some countries can yield to Trump’s demands, but Canada can “counterattack with its own measures, which increases the risk of an escalation cycle and a broader commercial war that could lead to the United States – and the world – to the world – to a recession ”.

Separately, an analysis of the Research Service of the United States Congress (CRS) said that the costs of crude oil will be higher, because Mexico and Canada export 71 percent of that input to the country, which will reduce the gain margins of the refineries and will be reflected in gasoline prices.

He stressed that the hydrocarbons sector usually works based on factors such as geographical proximity, refinery configurations, crude oil quality and an integrated network of ducts.

The CRS analysis indicates that in 2023 the US refineries imported 6.5 million barrels per day of crude oil, which is subject to tariffs.

He stressed that Canada covered about 60 percent of the total and Mexico 11 percent. It indicates that the first affectation arises in the increase in the cost of energy, the impact on the profits will depend on the refineries, but the distribution of the costs will affect the entire production chain.

Gasoline, diesel consumer prices and other oil -derived products throughout the country could be affected by crude oil import tariffshe said.

The CRS indicates that the US president can invoke the Law on International Emergency Powers (IEEPA), which does not need an approval of the Congress, but legislators can modify it to restrict its use in the imposition of tariffs .