Trump backs ban on diesel exports

President Trump said Tuesday that he has called for a ban on U.S. diesel exports, while Treasury Secretary Scott Bessent confirmed the administration is examining whether a full or partial ban is feasible.

Why it matters: Trump's endorsement marks a shift for an administration that has resisted calls to restrict fuel exports, as record diesel prices squeeze farmers and truckers and fuel Republican concerns ahead of the midterms.

Economists and energy analysts the move could lower diesel prices for Americans in the short term but would likely raise prices globally including eventually in the U.S.

Zoom in: When asked during a press briefing alongside Ukrainian President Volodymyr Zelensky if he supported a diesel ban endorsed by other Republicans, Trump said that he had called for that too.

"I've said let's not send out the diesel. We make a lot of diesel, and it could have a little bit of an effect on regular automobile gasoline because when you do that, you know it's a sort of a flow, it's a balance. But no, I've called for it. I've called for it within my people."

Bessent, sitting beside Trump, said the administration was examining "whether it's feasible in terms of the overall refining capacity, and whether a full or a partial ban would work."

When asked about the timeline of such a decision, Trump replied: "Fast, one way or the other."

Catch up quick: Sen. Chuck Grassley (R-Iowa) recently proposed blocking diesel exports, hoping to lower prices domestically, and other farm-state Republicans quickly signed on too.

Rep. Ashley Hinson (R-Iowa), who faces a competitive re-election race, called for a diesel ban Monday while slamming the war in Iran. Republicans in Michigan and Louisiana did the same.

Senate Majority Leader John Thune (R-S.D.) said last week that he was "open" to an export ban.

Zoom in: A ban would keep diesel that otherwise would be exported in the U.S., potentially increasing domestic supplies and lowering prices in the short term.

But analysts warn it could drive up global diesel prices and eventually feed higher costs back into the U.S. economy.

The U.S. has rarely resorted to outright energy export bans because of concerns about disrupting global markets.

Flashback: Interior Secretary Doug Burgum said last week the administration would consider an export ban if it would lower prices, "but that's not the case."

💭 Thought bubble, via Axios Future of Energy co-author Ben Geman: The politics of $6.50 diesel are quickly overwhelming a broad consensus among oil market analysts that an export ban could ultimately backfire.

Zoom out: Trump does have emergency powers that could allow him to enforce a ban.

Congress could also pass legislation to achieve the same goal, but Senate Republicans are significantly divided on the measure.

Sen. Lisa Murkowski (R-Alaska) questioned whether a ban was worth rocking global markets, calling it a "short-term" benefit … "that doesn't really move the needle."

Sen. John Cornyn (R-Texas) called it "a gimmick."

What they're saying: American Petroleum Institute CEO Mike Sommers said restricting U.S. energy exports would "only compound the problem," exacerbating refining challenges and ultimately hurting consumers.

"The answer is more supply and more flexibility — not new restrictions that risk making a difficult situation worse," Sommers said.

Editor's note: This story has been updated with additional details throughout.

Ben Geman contributed reporting.