Trump defers diesel tax for truckers as fuel costs bite weeks before US midterms

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Published: 2026-10-06T11:53:15.474Z • Permanent link

Donald Trump signed an executive order deferring tax payments on red-dyed diesel used on public roads, according to sources close to the White House. This move comes as near-record fuel prices linked to the Iran war weigh on the Republican Party weeks before the US midterms. Fuel prices have surged since the US reimposed sanctions on Iran in May, affecting diesel prices across the country. The US Energy Information Administration reported that the average price of diesel fuel rose by 25% in the past month alone, reaching a record high of $2.85 per gallon. The fuel price increase has had a significant impact on the trucking industry, with many companies struggling to maintain profitability. The White House move is seen as a last-minute attempt to ease the burden on truckers and their families, who are likely to be voting for Democratic candidates in the upcoming elections.

Industry insiders say the decision to defer tax payments is a major win for the trucking industry, which has been vocal about the impact of fuel price increases on their bottom line. The American Trucking Associations estimated that fuel price increases have cost the industry $20 billion in lost revenue since May. The association's president, Scott Merzbach, welcomed the White House move, saying it will help to "ensure the long-term viability of the trucking industry." The deferment is expected to be in place until January 2024, when the tax payments will resume. The White House did not provide further details on the executive order, but sources say it will be implemented through a series of regulatory changes.

The decision to defer tax payments on red-dyed diesel has also been welcomed by some lawmakers, who have been pushing for relief for the trucking industry. Senator John Barrasso, a Republican from Wyoming, said in a statement that the move was a "much-needed step" to help the industry. "We must do everything we can to support our nation's truckers, who work tirelessly to keep our economy moving," he said. The deferment is also seen as a sign of the administration's willingness to listen to industry concerns and respond to their needs.

The decision to defer tax payments on red-dyed diesel has significant implications for the trucking industry and the broader economy. The fuel price increase has already had a ripple effect on the industry, with some companies announcing plans to raise prices or reduce services. The deferment is expected to help mitigate these effects, but it may not be enough to prevent further consolidation in the industry. Research communities have been warning about the impact of fuel price increases on the trucking industry for months, and the deferment is seen as a belated response to their concerns.

The deferment also has broader implications for the energy market, where fuel prices are expected to remain volatile in the coming months. Analysts say that the US is likely to remain a major player in the global oil market, but that the Iran war has created uncertainty around the country's ability to meet its energy needs. The deferment is seen as a sign that the US is taking steps to mitigate the impact of fuel price increases, but it may not be enough to prevent further price spikes.

The deferment also has implications for the Democratic Party's strategy going into the midterms. The fuel price increase has been a major issue for the party, with many voters expressing frustration with the lack of action on the issue. The deferment may help to ease some of that frustration, but it is unlikely to be enough to sway undecided voters. The party is likely to focus on other issues, such as healthcare and the economy, in the final weeks leading up to the election.