US President Donald Trump reiterated his threat to ban diesel exports in order to tame soaring domestic prices, though analysts warned such a move could have devastating consequences elsewhere. The US is the world’s biggest diesel producer and exporter, and Trump’s threat has put buyers on alert. A block could further fuel inflation as countries struggle to contain the fallout of global conflict.
Among the places most vulnerable are Mexico, which imports around 80% of its needs from its northern neighbor, and Europe, where Goldman Sachs economists forecast diesel prices could increase 2%. Soon, “European politicians may increasingly view dependence on US energy not only as a means of diversification,” one analyst noted, “but also … a specific political risk.”
