On Monday, US President Donald Trump signed an executive order easing restrictions on the use of tax-exempt colored diesel, in a move he said would save “millions” of dollars for farmers and reduce commodity costs, at a time when diesel prices rose after the war with Iran, increasing pressure on consumers and companies before the midterm congressional elections.
Trump signed the order in front of a crowd in Grand Island, Nebraska, during a Republican election tour, saying that the decision would reduce farmers' costs and help push down commodity prices.
Trump said that the typical truck driver will save more than $100 every time he fills his truck's tank, adding that the measure will save millions of dollars for farmers and reduce commodity costs.
The White House explained in a memo on the decision that colored diesel is intended for off-road use, including agricultural activities, is exempt from federal and state excise taxes, and is dyed a distinctive color for regulatory and law enforcement purposes. Temporarily lifting restrictions would ease cost pressures on companies that rely on diesel.
But Patrick De Haan, of Gas Buddy, a platform that monitors gasoline and diesel prices in the United States, said last week, when news of the potential action began to emerge, that the executive order may save money for on-road diesel users, but it will not reduce fuel costs for farmers, who already use tax-exempt colored diesel.
“Taxes are not the problem, supplies are,” De Haan wrote on the X platform.
Trump's move comes at a time when diesel prices have jumped in the wake of the war with Iran, alarming voters and increasing pressure on Republicans. The rise in fuel and food prices also represents one of the most prominent sources of voters’ dissatisfaction with the US administration’s performance in the economy, especially in rural areas that supported Trump and the Republican Party in the recent elections.
Trump said that his current tour represents part of an electoral movement extending 32 days before the November 3 elections, which has so far included conservative Republican states such as Oklahoma and Alabama. He is scheduled to travel to Texas on Wednesday for the second time in two weeks, to hold an election rally in San Antonio.
Republican Senator Pete Ricketts, who was the former governor of Nebraska, was appointed and then elected to fill Senator Ben Sasse's seat after he resigned to assume the presidency of the University of Florida in 2023. Ricketts is currently running for election to obtain his first full 6-year term in the Senate, against independent candidate Dan Osborne, in a race that was not initially expected to be competitive, but has become of interest to both parties at the national level.
Food and fuel prices pressure Republicans
Republicans are facing electoral headwinds as voters across the United States become dissatisfied with Trump's handling of the economy, including persistently high gas and grocery prices.
This issue is of particular importance to voters in rural areas, which supported Trump and his party in the recent elections.
The Trump administration's plan to allow more foreign beef imports has raised strong objections in Nebraska, a state that relies heavily on agriculture and livestock raising. Trump wants to lower beef prices for consumers, but ranchers have opposed the proposal to increase imports, warning that it could hurt local producers.
Ricketts told the Associated Press that the plan to import low-quality foreign beef does not help Nebraska ranchers, calling on the White House to change policy and focus on long-term measures that would increase herd size and ultimately reduce beef prices for consumers.
During the rally in Grand Island, Trump supporters expressed confidence in his ability to address the rising costs of living.
Marilyn Appel, of Garfield, Kansas, said she believes rebuilding reserves and resolving the situation in Iran will lead to lower fuel prices. She also expects food prices to decline and the economy to stabilize.
David Kunkle, who grew up on a farm and lives in Lincoln, Nebraska, expressed confidence that conditions will improve in the long term. But he said that the rise in gasoline, diesel and beef prices is not Trump's responsibility, adding that the president cannot simply lower prices by direct decision.
The euro continued to decline on Tuesday, near its lowest level in 17 months, affected by financial and political concerns in the euro zone, at a time when the dollar continued its rise, supported by the rise in US Treasury bond yields to record levels for several decades.
The euro fell slightly to $1.1220 in early Asian trading, after falling in the previous session to its lowest level since May 2025, continuing its losses of 1.2 percent since last week.
The European currency was trading at 84.83 pence, after it also fell by more than 1 percent against the British pound last week.
The euro is under pressure due to fears of high debt levels and political stagnation in France, while the expected early Spanish elections add more pressure on the European currency.
The euro's decline represents the latest sign of concern for policymakers, at a time when increasing French borrowing costs have expanded pressures to include the broader eurozone.
Joseph Capurso, strategist at Commonwealth Bank of Australia, said that his expectations for the euro are negative, likely to fall below $1.10.
He added that the rise in the euro requires a significant decline in oil prices, a significant increase in expectations for tightening European monetary policy, or progress in reducing the budget deficit, which is not expected to happen in the near term.
In the broader markets, the dollar continued its rise, benefiting from the fact that US Treasury bond yields remained high, after recording levels near their highest levels in several decades during last night’s trading.
The dollar rose slightly against the yen to 157.92, while the British pound fell 0.02 percent to $1.3222.
The dollar index rose to 102.16, after recording in the previous session its highest level in 18 months.
The dollar's strength came despite declining expectations for the Federal Reserve to raise interest rates this month, after data showed the US labor market was weaker than expected, at a time when investors are betting that the central bank will still need to continue tightening monetary policy at a later time.
Barclays analysts said in a note that the decline in the urgent need for monetary tightening due to adjustments to inflation expectations and economic data does not eliminate the pressures resulting from costs, which maintain doubts about the availability of the necessary conditions for inflation to continue at the 2 percent level.
Data released on Monday showed US service sector activity slowed in September, while strong domestic demand increased pressure on supply chains and raised input prices paid by companies, indicating the possibility of inflation remaining high until next year.
The Australian dollar fell 0.07 percent to $0.6967, and the New Zealand dollar fell 0.07 percent to $0.5596.
Asian stocks rose on Tuesday, tracking the rise of Wall Street, which pushed the Nasdaq index to a record close, while the decline in oil prices contributed to supporting the markets, despite long-term US Treasury bond yields remaining near their highest levels in decades.
The broader MSCI index of Asia-Pacific stocks excluding Japan rose 0.2 percent, while the Japanese Nikkei index rose 0.7 percent. European stock futures also rose 0.5 percent.
Nasdaq futures rose 0.2 percent, and Standard & Poor's 500 futures rose 0.1 percent, after Nasdaq recorded a record close in the previous session, supported by weaker-than-expected US jobs data, which reduced investors' bets on the Federal Reserve raising interest rates this month.
Nvidia's stock, one of the largest artificial intelligence companies, rose 2.1 percent to a record closing level, bringing its market value to $5.76 trillion.
Kyle Rodda, senior analyst at Capital.com, said that the rise in markets was again led by the technology sector, with a marginal decline in uncertainty about interest rates, along with a slight decrease in geopolitical risks, which allowed investors to focus on the exceptional growth in profits of artificial intelligence companies.
The third-quarter corporate results season is scheduled to begin next week. Goldman Sachs estimated that market expectations indicate that the profits of Standard & Poor's 500 companies grew by 27 percent during the past quarter, with companies benefiting from spending on artificial intelligence infrastructure contributing more than half of this growth.
Latin American markets also rose, led by the rise of Brazilian stocks and the real, after right-wing Senator Flavio Bolsonaro achieved results that exceeded opinion poll expectations in the first round of the presidential elections, qualifying for a run-off against the current leftist President Luiz Inacio Lula da Silva.
Treasury yields continue to rise
US Treasury bond yields continued to rise sharply, despite the decline in market bets on the Federal Reserve raising interest rates this month to 23 percent, from 71 percent a week ago, after senior central bank officials stressed the need for more data before resuming monetary policy tightening.
US bond yields for 10 and 30 years recorded their highest levels in 24 years during trading on Monday, continuing a continuous rise since mid-August due to concerns related to inflation and public debt.
The 10-year bond yield in Asian markets stabilized at 5.3089 percent, after rising 3 basis points during the previous session to 5.3493 percent, its highest level since 2002. The 30-year bond yield also stabilized at 5.6622 percent, after briefly reaching 5.7029 percent.
A survey by the Institute for Supply Management (ISM) showed that a measure of the prices paid by service companies for inputs has risen to the highest level in more than four years, reinforcing concerns about continued inflationary pressures.
In Europe, the wave of selling in French bonds calmed slightly, as the spread required by investors to hold French bonds for 10 years compared to safer German bonds fell to 137 basis points on Monday.
You are under pressure
The euro fell to $1.1215, after falling by up to 0.8 percent during the previous session to $1.116, its lowest level since May 2025. It was also traded at about 177 yen, after recording losses for seven consecutive sessions.
Joseph Capurso, head of international economics at Commonwealth Bank of Australia, said that the deep divisions in the French parliament increase the risk of easing the proposed fiscal consolidation measures, or the government facing a vote of no confidence.
He added that the euro price against the dollar may test a support level at $1.1109.
This kept the dollar strong, as the dollar index stabilized at 102.2 points after rising 0.9 percent over the past week.
Gold stabilized in almost spot transactions at $4,141.31 per ounce.
