This Everyday Cost Is Getting Cheaper During Trump’s Tariff Push

President Donald Trump’s tariffs have rattled markets and heightened consumer worries over inflation, but one expense has seen prices fall.

Gas prices have dropped in recent weeks, bucking the typical seasonal trend of increases during the spring travel season. Oil prices fell sharply after President Donald Trump’s April 2 announcement of “reciprocal tariffs” and sent fuel prices down with them, making gas half a dollar cheaper than the same time last year.

Drivers paid an average of $3.17 for a gallon of gas on April 23, according to AAA. That’s far lower than the $3.67 a gallon that prices averaged at this time a year ago, resulting in combined savings of $200 million a day for drivers, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

What’s Driving Gas Prices Lower?

There are a few reasons behind the drop in gas prices, and both involve oil. Gasoline is a product extracted from crude oil, which is why the price of automobile fuel will generally follow the path of crude oil prices. 

Oil-producing nations recently pledged to raise their production levels, giving investors confidence that fuel supplies will remain plentiful. The 411,000 barrel a day production increase that the Organization of the Petroleum Exporting Countries and allies (OPEC+) announced in April exceeded expectations.

Uncertainty around tariffs also undermines confidence in economic growth, as consumer sentiment has declined to near historic lows. That has raised forecasters’ worries that shoppers will spend less on travel and other activities that lead to the use of gasoline. Last week, the International Energy Agency cut its projection for oil demand growth for this year and next, citing the toll on the global economy from the escalating trade war stemming from Trump’s tariff policies. 

“So far, 2025 has been relatively calm at the pump for most Americans, thanks in part to OPEC’s ongoing restoration of oil production and continued uncertainty surrounding tariff policy and its potential impact on the global economy,” De Haan said.