Trump endorses diesel export ban as prices hit record

President Donald Trump on Tuesday endorsed a temporary ban on U.S. diesel exports, telling reporters at the United Nations General Assembly in New York that a decision would come "fast, one way or the other" as the national average price for diesel fuel hit a record $6.51 per gallon.usatoday+1

"I've said let's not send out the diesel. We make a lot of diesel," Trump said ahead of a meeting with Ukrainian President Volodymyr Zelensky. "I've called for it within my people. I've been talking about it."globalbankingandfinance+1

The remarks mark Trump's strongest public support yet for a measure that farm-state Republicans have pushed aggressively in recent days as the Iran war drives fuel costs to levels that threaten to become a major liability ahead of the Nov. 3 midterm elections.

Farm-State Pressure Mounts

Sen. Chuck Grassley of Iowa led the charge over the weekend, posting on X that "high diesel prices ARE KILLING FARMERS INCOME" and urging Trump to impose an embargo similar to those presidents used during the 1970s energy crisis. Senate Majority Leader John Thune said he was open to the idea, calling it preferable to a gas tax suspension that would create "holes in the Highway Trust Fund."thehill+1

Rep. Ashley Hinson, the Iowa Republican Senate nominee locked in a tight race, called for "suspending the gas tax, pausing diesel exports, unleashing E-15 everywhere we can" and creating a diesel relief program. Former Rep. Mike Rogers, the Michigan Republican Senate nominee, and Sen. Dan Sullivan of Alaska have also endorsed the proposal.washingtonexaminer+1

Treasury Secretary Scott Bessent said the administration is "examining that, whether it's feasible in terms of the overall refining capacity and whether a full or partial ban would work." Agriculture Secretary Brooke Rollins said she expected an announcement "very soon on some potential actions."usatoday+1

Oil-State Republicans and Industry Push Back

Not all Republicans are on board. Sen. John Cornyn of Texas dismissed the proposal as a "gimmick," and the American Petroleum Institute warned it would "make the problem worse, not better." API president Mike Sommers noted that most U.S. diesel production is concentrated on the Gulf Coast, which already produces more than the region consumes, while other parts of the country depend on imports.finance.yahoo+1

Bob McNally, a former energy official in the George W. Bush administration and president of Rapidan Energy Group, called it "taking a sledgehammer to the problem," warning that an export ban could cause diesel prices to plunge in the Gulf Coast and Midwest but spike on the East and West Coasts, which rely on imports.finance.yahoo

The Political Calculus

Diesel prices have surged 83% this year, driven by the Iran war's disruption of Middle East exports, Ukrainian drone strikes on Russian refineries, and export restrictions by Russia and China. The cost squeeze has hit rural states especially hard, compounding damage from Trump's tariff agenda on agricultural commodities like pork and soybeans.thehill+1

Seven House Republicans broke ranks last week to vote for stopping the war absent congressional authorization, including two Iowa members facing tough reelection bids. Sen. Tim Kaine has vowed to force weekly votes on a War Powers Resolution to end the conflict.agriculture

Energy analysts say the most effective path to lower prices remains ending the Iran war itself. "Unless they are prepared to make a deal with Iran, they don't have good options for lowering prices," said Gregory Brew, senior analyst at the Eurasia Group.finance.yahoo