Trump backs temporary U.S. gas tax suspension amid price surge

Trump told reporters on Monday that he favors reducing the 18.4-cent federal gasoline tax and said the measure could remain in place “till it’s appropriate.” Any suspension would require approval from Congress, where Republicans currently hold a majority.

Republican Senator Josh Hawley announced plans to introduce legislation that would suspend both the federal gasoline tax and the 24.4-cent diesel tax for 90 days.

Fuel prices in the United States have climbed since the outbreak of the Iran war on February 28 and the continuing closure of the Strait of Hormuz, a key route for global oil shipments. According to AAA data, average gasoline prices reached $4.52 per gallon on Monday, the highest level since 2022.

Senate Majority Leader John Thune said Republican lawmakers had not yet reached a common position on the proposal. He added that reopening the Strait of Hormuz would be the most effective way to reduce fuel prices and noted that fuel taxes help finance road maintenance projects.

Some Democrats had also proposed a temporary suspension earlier this year. Senator Mark Kelly previously supported halting the tax through October. Federal fuel taxes generate about $2.5 billion per month for transportation funding.

Trump also said the administration has taken additional steps to ease energy costs, including releasing crude oil from the Strategic Petroleum Reserve and temporarily waiving shipping restrictions under the Jones Act to simplify fuel transportation within the country.

Energy analysts cautioned that suspending the tax may provide limited relief if disruptions in Middle Eastern oil shipments continue. Rising fuel costs have also increased concerns about higher prices for groceries and other consumer goods ahead of the November midterm elections.

Earlier, Qazinform News Agency reported that Donald Trump said the ceasefire with Iran remains in place but is “on massive life support.”