Trump said he aims to suspend the federal gas tax to lower prices, as fuel costs rise amid Iran-related shipping fears.
A surprise tax proposal is now driving the energy-price conversation in Washington: President Trump said he aims to suspend the federal gas tax “for a period of time,” arguing it could help bring fuel costs down.
In a phone interview with CBS News on Monday morning. the president said he supports removing the gas tax temporarily and then letting it phase back in once prices fall.. His remarks come as Americans feel mounting pressure at the pump. with gas prices rising sharply since the start of the war between Iran and Feb.. 28, and reaching a high above $4.52 on Sunday, according to AAA.
Analysts cited in the report said prices are likely to stay high while Iran blocks access to the Strait of Hormuz. a key shipping route.. That strategic choke point matters because disruptions can tighten global supplies and push up costs across the market. influencing everything from consumer driving expenses to freight and logistics.
The push to suspend excise taxes also runs into a legal and financial reality.. The report noted that pausing federal excise taxes requires an act of Congress. and that stopping the tax would cost the federal government about a half billion dollars a week.. The stakes are also broader than transportation budgets: revenue from the federal gas tax goes to the Highway Trust Fund for constructing and repairing roads. and it supports other transit projects.
Even before the White House’s broader plan is translated into legislation, the political momentum is already forming.. Following Trump’s comments, Republican Sen.. Josh Hawley said Monday he would introduce a bill to suspend the federal gas tax.. The report also said several Democratic lawmakers have already introduced their own legislation aimed at pausing or lowering the tax.
In this context. the debate is likely to hinge on how quickly lawmakers can act and whether a temporary tax suspension would meaningfully offset longer-running supply pressures tied to the Strait of Hormuz.. If fuel prices remain elevated due to ongoing disruption. supporters of a pause may argue the tax cut buys time for households. while opponents may warn about lost revenue for transportation infrastructure.
The interview also turned to the aviation industry, where rising costs have forced airlines to make difficult decisions. Trump rejected the idea of a bailout for U.S. air carriers, saying “a bailout proposal hasn’t really been presented” and that “the airlines are doing not badly.”
He pointed to changes unfolding in the industry tied to surging fuel expenses. The report said jet fuel costs have more than doubled since the start of the war with Iran. It also referenced that Spirit Airlines shut down earlier this month under pressure from rising jet fuel prices.
Analysts cited in the report suggested ticket prices for all airlines are likely to increase this summer as costs rise.. In that sense. the gas tax proposal and the airline dispute both reflect the same underlying theme: when energy becomes more expensive or uncertain. costs spread through different sectors. from household budgets to consumer travel.
Trump also discussed his reaction to a CBS News “60 Minutes” interview with Israeli Prime Minister Benjamin Netanyahu.. The president called the interview “pretty good. ” but said he disagreed with Netanyahu’s claim that “nobody had perfect foresight” regarding Iran’s willingness to choke the Strait of Hormuz.
In the remarks. Trump argued that he knew the closure was coming and framed the situation around what he described as Iran’s limited strategic options in the region.. He said they would have had the strait open under what he called “Operation Freedom. ” but added that he believes certain countries asked him not to do it.. When asked whether he intends to restart a vessel-safety operation for the strait. he replied that he does not know. adding that it could instead involve something “much more severe.”
The report also said Trump described Iran’s latest peace proposal as “totally unacceptable.” Asked what specifically made it unacceptable, he characterized it as “a bad proposal” and said it was written and delivered poorly by people he argued had no sense of the danger involved.
When questioned about whether Iran made any concessions related to its nuclear program. Trump said “yeah. for sure. ” while also adding that the concessions were “not nearly enough.” This combination—condemning the offer while asserting limited concessions—signals how the president is attempting to balance diplomatic criticism with continued pressure.
For lawmakers and markets. the immediate policy question is whether a federal gas tax suspension can move fast enough to counteract the drivers of rising prices.. For the public and transport-dependent industries. the broader implication is that energy shocks linked to geopolitics are not contained to one sector; they ripple from road spending to airline fuel bills and. ultimately. consumer prices.
federal gas tax Trump suspension gas prices Strait of Hormuz airline bailout Highway Trust Fund