Global stock markets have plummeted following President Donald Trump’s reciprocal trade announcement last week. But there may be a silver lining: lower gas prices. 

Crude oil prices have been falling since April 2, when the president announced a 10% baseline tariff on all imported goods and even larger reciprocal tariffs on dozens of countries. The price of crude directly impacts gas prices because it makes up about half of its cost.

What You Need To Know

  • The national average for a gallon of gas could fall below $3 in the coming weeks because of Trump's tariffs

  • The price of crude oil has been falling since April 2, when President Donald Trump announced a 10% baseline tariff on all imported goods and even larger reciprocal tariffs on dozens of countries

  • The price of crude oil directly impacts gas prices because it makes up about half of its cost

  • Oil prices have fallen to their lowest level since the COVID pandemic

While the national average for a gallon of gasoline rose 10.6 cents Monday compared with a week ago and is currently $3.21, according to the price-tracking website GasBuddy.com, it could fall below $3 per gallon in the coming weeks if the tariffs are not scaled back.

Last week, a 25% tariff on foreign-made autos took effect, followed by a 10% baseline tariff that kicked in Saturday. More extensive reciprocal tariffs are expected to begin Wednesday.

Plummeting oil prices coupled with petroleum-exporting countries increasing their production are likely to drive down gas prices, GasBuddy Senior Petroleum Analyst Patrick De Haan said in a statement Monday.

With oil prices falling to their lowest level since the early days of the COVID pandemic in 2021, drivers of gas-powered cars will benefit, but De Haan cautioned it signals something more dire:

“In addition to falling oil prices, the stock market has dropped sharply, and the risk of a recession has increased — raising the likelihood of reduced global energy and oil demand.”