The U.S. and Canada have long worked together to ensure families can afford the energy they need. But that is expected to change rapidly— with experts predicting that the Trump administration’s new 10% tariff on Canadian energy will cause severe financial strain on American families and make basic household necessities out of reach.
When energy prices rise, everything else follows. A tank of gas will cost more. Heating a home in the winter will become more expensive. Even local goods could cost more as businesses pass the rising energy costs onto consumers.
The Midwest, where refineries have been set up to work with heavier-grade Canadian crude, will be particularly affected by the tariffs and could easily add 20 to 30 cents per gallon on average in the near term.
Parents trying to get their kids to school, workers commuting to jobs, small business owners keeping the lights on—these are the people who bear the burden when costs go up.
Jonathan Wilkinson, Canada’s minister of energy and natural resources, said, “We will see higher gasoline prices as a function of energy, higher electricity prices from hydroelectricity from Canada, higher home heating prices associated with natural gas that comes from Canada and higher automobile prices.”
Canada has signaled that it will respond with its own trade measures, including tariffs on products like milk, orange juice, apparel, and home appliances. American businesses that rely on exports to Canada—particularly in the agriculture and manufacturing sectors—could face declining sales and increased costs, adding further strain to an already uncertain economic environment.
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