Trump's red-dyed diesel order is a stunt that hurts workers
By Maya Ellison · Reporting from Detroit ·
President Donald Trump's executive order on tax-free diesel offers superficial relief to farmers and truckers but serves as a political distraction from structural energy failures.
Donald Trump is playing games with the gas pump while the world burns. By signing an executive order to allow tax-free red-dyed diesel for "any reason," the president is selling a miracle cure for a systemic collapse. He claims this is a "historic" win for hardworking Americans. In reality, it is a political prop designed to cinch elections for Gov. Jim Pillen and Sen. Pete Ricketts. This is not a policy; it is a campaign ad disguised as relief. It ignores the structural rot of our energy policy and leaves the most vulnerable workers holding the bag.
A temporary band-aid on a $6 gallon
The numbers the White House is touting are a distraction. The national average on-highway diesel price has hit $6.38 per gallon, according to the Nebraska Examiner. Trump's order seeks to "defer" the federal diesel tax of 24.4 cents per gallon. He wants the Treasury to "explore" if that money can be forgiven later.
For a rancher like Becky Potmesil, this is a "nothing burger." She calls it "just a lot of noise." She knows that the base price of fuel is the real killer. Red-dyed diesel was already tax-free for off-road use. Moving that tax break to the highway does nothing to lower the cost of the oil itself.
This is a classic move from the Trump playbook. Middle East Eye reports that diesel prices have risen 70 percent since the war on Iran began. A few cents of tax deferral cannot fix a global supply shock.
The trap for the trucking industry
The most dangerous part of this order is the risk it shifts onto workers. The White House wants us to see "savings of over $100 per fill-up." But they aren't talking about the IRS.
Kent Grisham, CEO of the Nebraska Trucking Association, is being very clear: "Do not put dyed diesel in your tanks — at least not yet." He knows the law. The minimum fine for the unlawful use of red diesel is $1,000.
The executive order merely defers the tax; it does not rewrite the statutory tax code. If the Treasury does not find a way to forgive the debt, truckers could face a mountain of penalties come January.
Truckers move 88% of the tonnage in Nebraska. They are the backbone of the supply chain. Asking them to gamble their livelihoods on a "deferral" is an insult. It is a policy written by people who have never spent a night in a sleeper cab or worried about a surprise audit.
A pattern of geopolitical desperation
We have seen this movie before. This is the Oil Crisis in action. The mechanism is always the same: a conflict in the Middle East spikes energy prices, and the government scrambles for a short-term fix to quiet the public.
The current crisis stems from the war on Iran and the closure of the Strait of Hormuz. This is a geopolitical disaster that requires a diplomatic solution, not a coloring project for fuel. But the market does not move because of a press release.
Even the relief provided by Gov. Jim Pillen in Nebraska comes with a hidden cost. He is refunding the state diesel tax of 31.8 cents per gallon for certain loads. Farmer Kent Green warns that "taxes are like a balloon." When you push on one side, it pushes on the other.
When state highway funds dry up, the roads and bridges in rural zip codes are the first to crumble. We are trading the safety of our bridges for a few weeks of cheaper fuel.
Donald Trump is not fighting inflation; he is managing perceptions. He is using the desperation of farmers and truckers to buy political loyalty. Justice would require a real energy strategy that doesn't depend on the whims of an executive order or the closure of a shipping lane. Instead, we get a "nothing burger" that risks $1,000 fines for the people who actually keep this country moving.
The verdict is clear: this order is a fraud. It offers a handful of cents today in exchange for potential bankruptcy tomorrow. It protects the political careers of Jim Pillen and Donald Trump while leaving the structural causes of the $6 gallon untouched. The working class does not need a tax deferral; they need a government that stops treating the global energy market like a campaign rally.