How will trade war impact regions fuel prices?

MONTPELIER, Vt. (WCAX) – President Donald Trump late on Monday agreed to a 30-day pause on his tariff threats against Canada. If and when those tariffs take effect, our region could see an increase in prices at the pump and in the home heating sector.

Energy consultant Matt Cota says if Trump’s tariffs stand, northern Vermont, New Hampshire, and New York are going to feel the pain at the pump. “It’s not great, it’s not great at all,” he said.

Cota says say a quarter of electricity in our region, almost all natural gas, and about one-third third of fuel products come from Quebec.

Contracts for Vermonters who locked in their heating and fuel prices early in the season should not be affected, but there are no similar protections for retailers. Local fuel companies can instead go south to other suppliers, but Cota says that has its own drawbacks. “It’s a longer transportation, so that’s more time on the road, less frequent loads that are coming back, and there’s transportation costs associated with driving longer distances to bring the same amount of fuel back,” he said.

President Trump over the weekend said that U.S. citizens will feel the pain in the short term but that the tariffs will spur U.S. production. Some Vermonters agree. “Prices will come down. On certain things that are made from other countries, I think they are going to start making them here to equal it out,” said Chris Puccio of Bradford.

Cota says he hopes the Trump administration and Canada can come to an agreement. “These types of tariffs are not good for anyone, particularly those of us in Vermont who depend on our valuable trading partners in Quebec to deliver us energy products,” he said.