San Diego drivers could soon feel an even greater financial strain at the pump as the Trump administration moves forward with new tariffs on Mexican and Canadian goods.
The 25% tariffs, set to take effect next Tuesday, were temporarily paused earlier this month after Mexico and Canada implemented new border security measures. However, President Trump announced today that the tariffs will move forward due to what he called "unacceptable levels" of drugs still entering the U.S.
The new tariffs could have widespread economic consequences, with gas prices among the areas of concern. San Diego is already experiencing a seven-month high in fuel costs, and experts say the tariffs could push prices even higher.
Rising Gas Prices Impact Local Drivers
At a Shell station in Chula Vista, a gallon of regular gas currently costs $4.69. For those with larger vehicles, like local driver Delfin Eljincholin, the financial burden is substantial.
"It's probably gonna be like $80 or maybe $100 because I'm down to an empty tank," said Eljincholin, a Chula Vista father of five. With a 60-mile roundtrip commute, his fuel costs add up quickly each month.
"Inflation is already high, so it's a crunch on our wallet," he added.
The Economic Impact of Tariffs on Oil Imports
According to Alan Gin, a professor of economics at the University of San Diego, Canada and Mexico are the United States' largest trading partners and major oil exporters.
"In terms of the U.S. oil market, Canada provides more of the exports of oil to the U.S. than Mexico does. So, the impact on Canadian oil will be bigger," Gin explained.
While tariffs on oil and energy from Canada are expected to be lower — around 10% instead of 25% — San Diego will likely feel the effects at the pump.
"Gasoline prices could rise anywhere from 9 to 20 cents per gallon," Gin projected.
For many San Diegans, the potential increase in gas prices will mean reevaluating household budgets.
