Trump's red-dyed diesel order is a stunt that fails workers

By Maya Ellison · Reporting from Detroit · October 6, 2026

President Donald Trump waived taxes on red-dyed diesel to lower costs, but the move is a temporary political mask for a systemic energy crisis that leaves truckers exposed.

When Donald Trump stood before a crowd in Nebraska, he admitted he didn't "know what the hell" red dye diesel is. That admission is the only honest part of his new executive order. By waiving the off-road requirement for tax-exempt fuel, Trump isn't solving an energy crisis. He is performing a magic trick for the midterms. He is dangling a temporary tax loophole in front of truckers and farmers to hide the wreckage of his own foreign policy. This isn't leadership. He is taking a political victory lap while the people who actually move the country's goods are still drowning in costs.

A shell game for the steering wheel

The mechanics of this order are simple. Normally, diesel for highways carries a federal excise tax of 24.4 cents per gallon. Red-dyed diesel is tax-free because farmers use it for tractors and machinery. Trump's order now allows anyone to buy the red stuff for any reason. According to NBC News, the administration claims this will save typical truckers more than $100 every time they fill their tanks.

But follow the money downward. This isn't a tax cut. It is a deferral. The order pushes the federal tax payment to the end of the year without interest. Trump only directed the Treasury to "explore pathways" to eliminate the bill. For a driver, this is a gamble. They are being told to use a fuel that is usually illegal on highways on the promise that the bill might just vanish.

I grew up in Flint. I watched the 2008 crash take the houses on my block. I know what happens when the powerful offer "temporary" relief that turns into a permanent debt. Trump is using a tax waiver to mask a systemic collapse. He is giving truckers a coupon while the house is on fire.

The cost of a manufactured crisis

The fire is real. According to AAA, diesel hit an all-time high price of $6.52 per gallon. Since the war in Iran began, the price of a gallon of diesel has risen by more than 70%. This is not a market fluke. It is the result of the war in Iran, a geopolitical failure that the administration is now trying to fix with a loophole.

This is the 1979 energy crisis all over again. A drop in oil production in the aftermath of the Iranian Revolution led to an energy crisis, drastically raising the price of crude oil.

The administration wants us to blame "green energy policies" in Democrat-led states for refinery closures. But CNN reports that the real triggers are the war in Iran, attacks on Russian refineries, and export restrictions in China. The problem is a lack of global refining capacity. A tax waiver doesn't build a refinery. It doesn't stop Ukrainian drones from hitting Russian oil plants. It just makes the fuel slightly cheaper for a few weeks.

This is the same logic as the Tax Cuts and Jobs Act of 2017, which worsened federal debt while disproportionately raising incomes for the most affluent. It is a rapid, executive-led fix that prioritizes political optics over structural stability.

The trap in the tax code

The strongest case for this order is that it provides immediate relief. An able advocate would say that when a fill-up for a truck is expensive, a $150 saving is a lifeline. They would argue that it helps farmers move livestock and products during a record spike. They would say any relief is better than no relief.

That argument is a trap. First, the relief is fragmented. The White House is only "encouraging" states to suspend their taxes. CNN reports that only 10 states have actually increased access to dyed diesel. This includes Texas, Oklahoma, and Alabama. These states account for about one-third of diesel sales.

For a trucker crossing state lines, this is a nightmare. They could be using red-dyed fuel in a state that hasn't waived its laws. That is tax evasion. It leads to fines and arrests. The government is encouraging drivers to break the law and then hoping the states will play along.

Second, the savings may never reach the driver. Patrick De Haan of GasBuddy says this is "not really a needle-mover." When supply is this tight, fuel distributors can simply raise the base price. They can swallow the tax savings as profit. The trucker still pays the same price at the pump, while the oil companies get a windfall.

The long record shows that temporary waivers during energy shocks rarely help the worker. They usually help the middleman. Trump is not fighting the oil companies. He is giving them a way to maintain high prices while he takes the credit for a "historic" order.

The result will be a compliance vacuum. Independent truckers who trust the White House will use red-dyed fuel. When the deferral expires at the end of the year, they will face multi-million dollar tax bills they cannot pay. Major refining corporations will absorb the savings, neutralizing the relief for consumers. Meanwhile, state governments facing highway fund shortfalls will crack down on interstate haulers. This order does not lower costs. It creates a legal and financial cliff for the most vulnerable people in the supply chain.

Trump's red-dyed diesel order is a stunt that fails workers

A shell game for the steering wheel

The cost of a manufactured crisis

The trap in the tax code

Sources