Trump temporarily eases the diesel tax in the U.S.

U.S. President Donald Trump has signed an executive order aimed at temporarily easing the tax burden on diesel used on the roads, at a time when rising fuel costs are causing concern in the U.S.

The measure could include truck drivers, farmers and other diesel users. Trump signed the order on Monday during a rally in Grand Island, Nebraska, where he was campaigning for Republican candidates.

According to the U.S. president, the measure will allow the use of so-called “red” diesel, which is normally used for tractors and off-road machinery and is exempt from the federal fuel tax.

However, the order is more limited than Trump initially presented it. It does not remove the tax, but defers its payment for dyed diesel used on public roads during the period October 5–December 31, without interest and penalties.

The order also asks Treasury Secretary Scott Bessent to examine ways, including legislative changes, to eliminate the obligation to pay the deferred amounts.

According to the White House, the federal tax on diesel is 24.4 cents per gallon, which means about 60 dollars for a 250-gallon fill-up. If states also implement similar measures, the saving could reach up to about 100 dollars per fill-up.

Bessent has five days, in consultation with Secretary of War Pete Hegseth, to determine whether the legal conditions for the tax deferral are met and which taxpayers will benefit from the measure.

The decision comes at a time when the Trump administration is trying to curb the impact of high fuel costs and economic concerns ahead of the midterm elections.