A motoring expert has warned that drivers could soon face even higher prices at the pumps after President Trump introduces tariffs in a bid to support local industry. Whilst the UK’s automotive industry is still adjusting to the introduction of a 25% tariff on all vehicles imported into America, similar measures created by Mr Trump could have other unfortunate consequences.
John Hardy, chief macro-strategist at the investment platform Saxo, noted that the tariffs could see the UK switch sources for oil, having an impact on the cost of petrol and diesel. He said: “First the UK would have to enact retaliatory tariffs for there to be any impact – if it does so, the cost burden would be probably partially be absorbed by the company that has to pay the tariff and partially passed on to the end consumer in the case of manufactured goods, so a squeeze on profits for the company and less purchasing power for the consumer.
“In the case of petroleum and diesel, it would encourage a scramble to find alternative suppliers of these commodities, which may be somewhat difficult to replace completely as the US is a significant supplier of crude oil, petrol and natural gas – around 30% – so some upward pressure on prices would be likely – once again, only if the UK chooses to impose retaliatory tariffs – which it might do at a much lower rate or not at all for something as essential as energy imports.”
According to Saxo, the UK imported £18.7 billion of fuel from the USA during 2023, including the crude oil that is used to make petrol and diesel. Whilst this is somewhat less the country’s main importer, Norway, the USA plays a considerable role in keeping cars on the road, meaning that the Government may have to find a new source.
The company warned that, should tariffs be imposed on oil coming from America, this could result in the cost of oil rising, which would likely have a knock-on effect on the cost at the pumps.
The warning comes at a time in which many motoring experts are predicting that the average cost of petrol and diesel will fall for the first time in five months.
According to figures sourced from RAC Fuel Watch, at the end of March 2025, motorists were paying an average of 135.54p for a litre of petrol and 142.21p for a litre of diesel.
Whilst this is not the highest motorists have been charged for fuel, the declining price of oil during February 2025 could soon have an impact on prices at the forecourts.