Gasoline Prices Rose as Tariffs Were Reduced
Higher energy costs have driven inflation while the U.S. and China agreed to scale back trade tariffs.
Updated on Sept. 28, 2026 in Oil and Gas
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The national average price for regular gasoline has climbed to $4.48 per gallon, marking a nearly 5-cent increase over the previous week. This rise accompanies a trade agreement between the U.S. and China to reduce tariffs on $30 billion worth of goods.
Why it matters
Kevin O'Leary identified persistent high energy prices as a primary driver of domestic inflation, complicating broader economic recovery efforts. Meanwhile, the U.S. and China are attempting to stabilize trade relations through tariff reductions and a new bilateral dialogue on artificial intelligence.
The national gasoline average currently sits at $4.48 per gallon, up from a September 2026 average of $4.30 per gallon and significantly higher than the September 2023 record of $3.83 per gallon. The iShares U.S. Oil & Gas Exploration & Production ETF closed at $133.70 on September 25, 2026.
The players
Kevin O'Leary
He is a prominent businessman and investor who frequently provides commentary on economic trends and inflation.
President Donald Trump
He is the current President of the United States and is actively involved in international trade and tariff negotiations.
President Xi Jinping
He serves as the leader of China and acts as the primary counterpart in bilateral trade agreements with the United States.
The details
Rising gasoline costs are largely attributed to Middle East instability and volatility in the Strait of Hormuz, which disrupts energy transport routes. Simultaneously, the U.S. and China have moved to reduce punitive tariffs on $30 billion of non-sensitive goods as part of a reciprocal baseline negotiation process.
Timeline
September 2023 saw a gasoline price record of $3.83 per gallon.
September 2026 recorded a monthly average gas price of $4.30 per gallon.
The IEO ETF closed at $133.70 on September 25, 2026.
Kevin O'Leary commented on tariff strategy on September 27, 2026.
Market Landscape
The U.S.-China tariff reduction agreement marks a shift in trade relations that seeks to alleviate inflationary pressure on non-sensitive goods. This move signals a strategic attempt to adjust market dynamics in the face of ongoing geopolitical volatility and trade barriers.
Rising gasoline prices may increase the daily cost of commuting and overall household transportation budgets for consumers worldwide. The reduction of tariffs on $30 billion in goods could eventually lead to lower price points for specific non-sensitive consumer products.
The takeaway
Energy price volatility remains a significant factor in global inflation, suggesting that transportation costs will continue to fluctuate based on regional stability. Diversifying supply chains and closely monitoring trade policy shifts are essential for businesses looking to navigate current economic unpredictability.
Further reading
For more information on market impacts, visit the /business/industry/oil-gas/ section.
Source note: This article includes information reported by Benzinga.
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