Iowa farmers, consumers and others are watchful for any impact that may be coming from tariffs President Trump is proposing on trade partners. A new ten-percent tariff is being imposed on China, while planned tariffs on Mexico and Canada are paused for a month, but they could still be enacted.
Brian Ortner, spokesman for AAA-Iowa, says gasoline prices haven’t fluctuated far, as yet.
“Tariffs are essentially taxes on imported goods, and when tariffs are placed on imported oil or gasoline, costs for refineries and suppliers may rise, which could potentially lead to higher gas prices for consumers,” Ortner says. “But again, knowing that these things have gone into effect, we’re not sure where that will go at this point.”
Reports show Canada and Mexico, combined, supply more than 71% of U.S. crude imports, with Canada making up 60%. During July of 2024, U.S. crude imports reached record levels, hitting 4.3 million barrels a day, according to the Energy Information Administration.
Ortner says if tariffs -are- imposed next month on Canada and Mexico, Iowa drivers could face a bigger expense when filling the tank — or perhaps not.
“Tariffs can play a role in gas prices, but that’s just one factor among many that determine the price we pay at the pump, including global supply, and that’s where we’re at,” Ortner says. “Predictions on how gas prices will go is not something we can do today. It is kind of a watch-and-see.”
AAA says gas prices in Iowa are averaging $2.97 a gallon today, while they were at $2.95 a week ago, so they’ve only risen two cents a gallon since the tariffs were first announced.
“We can’t predict how high gas prices would go, or when. We need to watch and see what the initiation of these tariffs does for prices,” Ortner says. “Just being that was signed this weekend, there’s not enough information to determine which way it’s going to go.”
The national average for gas is $3.12 a gallon. Gas prices statewide are varied, with the cheapest gas in Council Bluffs at $2.90 and the most expensive in Dubuque at $3.10.
(Pat Powers, KQWC, Webster City contributed to this story.)