Just yesterday, Trump himself said be called for it and Treasury Secretary Scott Bessent confirmed the administration is examining whether a full or partial ban is feasible.
“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,” Trump said.
Now the White House is calling a report in Politico that says the White House is preparing a 90-day diesel export ban ‘fake news’. The report cited 5 people familiar btu said the legal process was being worked out. Perhaps the thinking here is that they don’t want people front-running a ban, but Trump already tipped his hand so none of this makes any sense.
If the US does ban diesel exports, it would be a dire move that would permanently break the US reputation as a reliable supplier of commodities and commodity products. It would also invite retaliation.
This article was written by Adam Button at investinglive.com.