Amid Fuel Price Hike, Trump Signs Order to Make Category of Diesel Tax Free for Farmers & Truckers
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
US President Donald Trump has signed an executive order temporarily allowing highway use of tax-exempt dyed diesel, seeking to ease pressure on truckers and farmers as diesel prices remain elevated.
Trump Announces Move At Nebraska Rally
Trump announced the measure at a rally in Nebraska on October 5, saying the order would temporarily waive the off-road requirement attached to tax-free red-dyed diesel.
The fuel is normally intended for off-road vehicles such as farm and construction equipment and is sold without the federal diesel tax. Under the new order, the administration is seeking to allow its highway use temporarily through the end of the year.
Trump called the move an effort to bring down costs for industries that depend heavily on diesel.
“Farmers and truckers are essential to the American way of life,” the executive order states, citing restricted global diesel supplies and rising prices.
Order Does Not Outright Waive Diesel Tax
Despite Trump's announcement that the measure would allow broader use of tax-free red diesel, the executive order does not itself provide an outright tax waiver.
Instead, it directs the Treasury Department to determine whether certain federal diesel-tax payments can be deferred through the end of the year. It also suspends specified penalties associated with the highway use of normally tax-exempt dyed diesel.
The federal diesel tax is 24.4 cents per gallon, according to the White House. On a 250-gallon fill, that amounts to about $61 in federal tax.
Diesel Prices Remain Elevated
The administration has pointed to higher diesel prices and tighter global supplies as key reasons for the temporary measure.
Trump said the move would also help reduce the cost of goods, including groceries, by lowering transportation costs.
According to the figures cited in the announcement, diesel averaged $3.56 a gallon at the start of the year but has since risen sharply. AAA data put the national average at $6.32 a gallon on Tuesday, with prices having remained above $6 for nearly a month.
Natalie Harp Joins Trump On Stage
After announcing the executive order, Trump called his close aide Natalie Harp, 35, to the stage to hand him the document.
Harp, a former One America News Network anchor who worked with Trump as an aide between his two terms, handed him the order, which he signed in front of supporters.
Trump then tossed his marker into the crowd before returning the document to Harp with a pat on her back.
“She reminds me of The Price Is Right,” Trump said, joking about Harp's brief appearance on stage.
Harp's close access to Trump has attracted growing media attention. The White House has defended her, describing her as a trusted and admired White House official.
