US motorists could face a hike in gasoline prices if the incoming Trump administration imposes tariffs on products from Mexico and Canada, Bloomberg said.

• Earlier this week, Trump threatened to impose a tariff of 25% on all products from those countries.
• Canada and Mexico combined supply around 70% of oil barrels imported into the US.
• Most of the flows go to fuel makers in the Midwest, where refiners source 75% of their feedstocks from Canada.
• The extra costs could raise Midwest gasoline prices by up to as much as 50 cents/gal, according to GasBuddy.
• The plans also run counter to another ambition for Trump’s administration of bringing gasoline prices below $2/gal.
• “Canada and PADD 2 refiners are inextricably linked, with few options to divert and substitute [Canadian and Mexican supply],” Rapidan’s Bob McNally said.
• Rapidan assigned 25% odds Trump would go through with the plans he announced this week.