Gas Prices Spike Nationwide but Experts Predict a Quick Decline
Gas prices have climbed for the third straight week, reaching a national average of $3.24—the largest weekly gain of the year—though prices remain 34 cents lower than a year ago, according to the U.S. Energy Information Administration. Despite the recent spike, experts predict prices will soon fall due to plummeting oil prices driven by recession fears, stock market volatility, and increased oil production from OPEC+. GasBuddy’s Patrick De Haan expects a broad price drop as oil hits lows not seen since early in the pandemic. As of April 7, regional prices range from $2.84 on the Gulf Coast to $4.32 on the West Coast, with all areas seeing weekly increases. Mississippi holds the nation’s lowest average at $2.74, and 15 states now have averages under $2.99.
Canada Strikes Back with Auto Tariffs in Response to U.S. Trade Measures
On April 9, Canada implemented retaliatory tariffs of up to 25% on fully assembled U.S.-made passenger vehicles, in response to U.S. auto tariffs imposed by President Trump a week earlier. These tariffs aim to pressure Washington to lift its levies and primarily target vehicles not compliant with the USMCA, although even USMCA-compliant vehicles are subject to a 21.25% default tariff rate based on assumed non-Canadian/Mexican parts content. Importers can claim higher regional content to reduce duties, subject to verification. Unlike the U.S. tariffs, Canada’s surtax excludes auto parts, but it is still expected to increase vehicle prices and impact automakers. The move follows two previous rounds of countertariffs and underscores Canada’s stance against what it deems unfair trade practices. Proceeds—estimated at $8 billion annually—will support affected autoworkers and companies, and a new incentive framework for Canadian vehicle production is in development.
Tariffs Shake Up Used-Vehicle Market: Rising Prices, Shrinking Inventory, and Shifting Demand
The recent wave of automotive-specific tariffs is significantly impacting the used-vehicle market, affecting inventory, pricing, and sales, according to Cox Automotive. A new 25% tariff on imported vehicles has triggered a spike in new-vehicle demand, spilling over into the used market and prompting expectations of higher wholesale values in April. Used inventory declined to 2.15 million units in March, while retail used-vehicle sales rose 19.4% from February and 8% year over year. Tariffs on auto parts may also raise service and reconditioning costs. March's Manheim Used Vehicle Value Index (MUVVI) fell slightly due to weaker-than-expected seasonal gains, though wholesale activity picked up at month-end. EVs saw steeper depreciation than non-EVs, even as their auction share hit record highs. Major vehicle segments posted mixed results, with luxury cars and SUVs outperforming while compact cars and sedans lagged. Despite short-term volatility, Cox revised its 2025 forecast upward, projecting used-vehicle sales to hit 20.1 million and the MUVVI to increase by at least 2.1% due to demand shifts from new to used cars. Meanwhile, consumer confidence declined in March across multiple indicators, reflecting rising inflation expectations and diminished outlooks on vehicle-buying conditions.