Trump Acts to Slash Diesel Costs, Support American Workers and Energy Independence
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President Trump has signed an executive order that temporarily allows off-road diesel on highways and defers the diesel fuel tax, delivering decisive relief to truckers, farmers, and American businesses while strengthening U.S. energy security.
Demonstrating his unwavering commitment to American workers and energy independence, President Donald Trump has signed an executive order that temporarily lifts the restriction on red-dyed off-road diesel, making it available for use on highways. The order also defers the federal excise tax on diesel fuel through December 31, with no interest or penalties, and directs Treasury officials to seek ways to eliminate the deferred tax liability—delivering much-needed relief to truckers, farmers, and small businesses across the nation.
The White House emphasized that this measure is designed to cut fuel costs for hardworking truck drivers, farmers, and other essential workers, estimating savings of more than $100 per refill for truckers. The Transportation Department will coordinate the change with states, industry groups, and labor organizations, ensuring a smooth transition and continued support for the backbone of America’s economy. The Agriculture Department will monitor supply to guarantee farmers in high-demand areas have the resources they need to keep America fed and thriving.
The order also urges White House intergovernmental affairs officials to encourage states to adopt similar tax-relief policies, further empowering states to support their citizens. In a show of decisive leadership, the administration also announced a waiver permitting truck drivers hauling gasoline and diesel to operate additional hours, ensuring vital goods reach their destinations, and secured a separate agreement with European partners to release 100 million barrels of refined diesel from strategic reserves over the next four months—bolstering U.S. energy security and protecting American interests.