Should’a bought that EV! Joseph Brusuelas notes tariffs should show up in gas prices in the Midwest pretty quick, as the region gets its oil from Canada.
Source: Joseph Brusuelas.
Current price is about $3/gallon.
Source: EIA.
If the current price of petroleum (WTI) is $73.51/bbl. An increase in prices of 10% due to tariffs results in a $7.35/bbl increase. This implies a 18 cent increase in gasoline prices from the tariffs, using Jim’s rule of thumb. Using Yilmazkuday’s (2021) estimate, the increase should be about 17 cents after about three months.Thanks, Trump!More By This Author:The Price Elasticity Of Avocado Supply, Demand, And Tariff Pass Through
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