Trump Threatens US Diesel Export Ban Unless Europe Releases Emergency Reserves

The Trump administration has told Germany and France to draw down their emergency diesel inventories to help ease record global fuel prices, warning that Washington could impose a US diesel export ban if they refuse. Three people close to the discussions confirmed the ultimatum to Reuters, while Politico reported the US asked Europe to release more than one-third of its diesel reserves. Trump's trade adviser separately pressed European allies on the issue and said he would raise it at a G20 meeting.

Diesel prices in the US have hit a record $6.53 per gallon, driven by supply disruptions tied to the conflicts in Iran and Ukraine. US diesel inventories have fallen below 97 million barrels, roughly 13% below the five-year seasonal average. A Dallas Fed survey published this week found elevated diesel prices could persist for more than four quarters.

Trump confirmed he is actively considering an export ban, saying "I'm thinking about it" and noting the administration regularly discusses the option with Energy Secretary Chris Wright and Interior Secretary Doug Burgum. However, Wright has argued against a blanket ban, warning that if refiners cannot export surplus diesel, storage could fill up and force plants to cut crude processing, which would also reduce gasoline and jet fuel output. The administration is weighing softer alternatives including voluntary export limits and expanded sales of tax-exempt dyed diesel.

The political pressure on the White House is intensifying, with top Senate Republicans calling on Trump to "stop the bleeding" as soaring fuel costs rattle the party a month before the midterm elections. One industry figure told Semafor that a ban was "getting pretty close to movement."