Over 3 in 4 Americans Think Tariffs Will Push Energy Prices Higher: What That Means for Your Wallet
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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Discussions of President Donald Trump’s sweeping tariff plans have largely focused on their potential impact on consumer prices. But most Americans fear tariffs will also push energy prices higher, according to a new survey from Payless Power.
The survey of 1,005 U.S. adults found that more than 3 in 4 respondents reported that they think tariffs on imported energy-related products are causing U.S. electricity costs to rise. Here are some more details on the study and how energy prices could be impacted by tariffs.
Are Energy Costs Rising?
More than half of respondents (56%) noticed an increase in their electricity bill during the prior month, with an average increase of $50.
These states reported the highest average increase in their energy bills.
- Delaware: $81
- Mississippi: $78
- Massachusetts: $75
- Louisiana: $67
- Missouri: $64
About 64% of respondents reported being concerned that rising electricity prices will make it harder for them pay their bills. More than one-third (36%) said they’re afraid tariffs will make paying their electricity bills more difficult.
Additionally, tariffs on imported solar panels, fuel and grid infrastructure have put more financial strain on households, the survey found. The vast majority (83%) of survey respondents support lowering tariffs on imported solar panels and grid infrastructure.
How Tariffs Are Impacting Energy Prices
These fears are not unfounded. In early March, a 10% tariff on energy from Canada and 25% tariffs on other Canadian and Mexican imports were imposed, CNBC reported last week. Trump later exempted certain imports covered under the U.S.-Mexico-Canada Agreement.
An analysis from Stanwich Energy warned that these tariffs could cause prices to increase and harm reliability and trade relationships.
“The U.S. is a major natural gas exporter, but Canadian imports remain essential, particularly in the Northeast and Midwest,” Stanwich explained. “A 10% tariff on Canadian natural gas could quickly translate into higher prices, especially during peak winter demand.”
Similar fears were raised by Joseph Curtatone, president of the Alliance for Climate Transition.
“These tariffs will be felt particularly during peak-demand periods, when the Northeast’s reliance on Canadian electricity is most acute,” Curtatone wrote in an April 22 column for the Maine Morning Star. “During these hours, tariffs could increase wholesale electricity prices by up to 30%. These costs disproportionately affect working families and small businesses that are already struggling with high energy costs.”
Impacts on Consumers
There are some potential trouble spots that tariffs could cause for consumers, according to Stanwich.
First, they could lead to higher consumer costs. Heating and electric costs in colder states could go up if Canadian suppliers pass along tariff costs.
Additionally, prices for natural gas could go up. As Stanwich explained, there are some power plants that look at the prices of oil and natural gas to determine which one they’ll use. If tariffs lead to higher oil prices, that would likely increase the demand for natural gas, pushing its price higher as well.
Lastly, tariffs on steel and aluminum could also make it more expensive to build and maintain transmission lines, substations and power plants. This, in turn, could lead to higher utility costs for consumers.
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