Everyone knows how much gasoline prices matter. The recent spike in gas prices triggered by the war with Iran has fueled deep pessimism about the economy and weighed heavily on President Donald Trump’s approval ratings.

But diesel fuel — the lifeblood of shipping, agriculture, and heavy industry — usually flies under the radar. Its price has surged too, and while truckers and farmers are feeling the initial blow, the rest of the country won’t be far behind.

“Most products in America are shipped along the road via trucks,” Nathan Bomey, a business reporter at Axios, told Today, Explained co-host Noel King. Diesel prices “directly affect their cost of doing business, which then eventually trickles down and affects the consumer.”

On the podcast, Bomey discusses what’s driving the price spike, how quickly it’s going to become a problem for everyday consumers, and whether electric semi trucks could offer a way out.

Below is an excerpt of the conversation, edited for length and clarity. There’s much more in the full podcast, so listen to Today, Explained wherever you get your podcasts, including Apple Podcasts, Pandora, and Spotify.

What is happening with diesel?

There was one major geopolitical event this year that disrupted the entire energy economy, which is the US and Israel attacking Iran. Iran is at the center of the oil economy in some ways, but primarily you have to look at the closure of the Strait of Hormuz and the jockeying over it that has happened in the months since.

Once they closed the strait, it disrupted the entire global energy economy because it handles a substantial portion of the shipping bringing supplies out of the Middle East. That affected diesel prices, gasoline prices, jet fuel prices, and effectively everything based on crude oil.

Who are the people right now that are profoundly freaked out about the cost of diesel?

First off, truckers are freaked out because their cost of doing business is going much higher. Farmers are also freaked out because they’re already facing real pressures from trade wars and things that are out of control, like climate issues, that have caused their costs to go higher. 

The price of diesel affecting farmers eventually affects the price they charge, which ultimately gets to the consumer because it ends up costing more to pay for things like an ear of corn.

How stark do you think this might be? In a month or two, do you think I could go down to Walmart and see that something I buy all the time is now a dollar more expensive? 

I think the impact is imminent. This flows through very quickly. We’re not talking about months; we’re talking about weeks, if not days, before people will start to notice increases, especially in the grocery aisle. That’s the first place people will notice it because fresh food has to be shipped on a weekly basis. Diesel prices are going to have a big effect on food inflation. This is coming off of several years of food price increases that we experienced in the wake of the pandemic.

We’re also barreling toward the holiday shopping season, which is going to be affected by this as well. If a toy, for example, is made with a resin affected by the cost of crude oil, which also affects the cost of diesel, and then it’s shipped over the road to Walmart in a truck that uses diesel, all of these things add up and will probably lead to higher prices.

We’ve also got an issue with heating oil, which is a fuel used primarily by households in the Northeast to heat their homes. Heating oil, diesel, and all of these oil-based products are caught up in this vortex right now. Ultimately, it is not something the ordinary person can do much about.

Do the industries that rely on diesel have any other options?

There are definitely alternatives to diesel, but in many cases, they cannot be switched to quickly. If you think about the trucking industry, they are invested heavily in big rigs that take products from place A to place B. If you are invested in a truck, yes, you could theoretically switch, but you would be scrapping this huge investment you’ve made. Diesel trucks are not really going anywhere immediately. A lot of times, they’re simply still the best way to get somewhere.

You can switch to rail; railroads are definitely a competitor to trucking, but really only best for certain types of products. There are other types of trucks you can buy. Compressed natural gas or liquid natural gas is an alternative fuel for some trucks, and biodiesel can actually be good. Hydrogen is more of a futuristic thing down the road.

In the short term, there is the possibility of using electric trucks. That is starting to become more realistic. In fact, in recent days, Tesla began major production of the Tesla Semi, an electric semitruck we’ve been waiting for for years. I remember covering this in 2018 when Tesla debuted the semi, and we all thought it was going to be coming out soon.

It has taken nearly a decade for this to finally become a reality in large proportions, but the Tesla Semi is an electric truck that could be an alternative for some. There are other companies making electric trucks too, so that could be viable. But the problem with electric trucks is that the battery is so heavy, making it tough to compete with diesel on shipping heavy items.

It was often joked that when the Tesla Semi first debuted, the very first thing it shipped was a bunch of bags of Cheetos because they were so light and the truck couldn’t handle extra weight. They had a deal with PepsiCo, and it wasn’t ready at the time to ship anything heavy. 

It’s a lot better now, but the issue is still how heavy electric truck batteries are, which will make them somewhat limited in capacity. However, we are seeing some demand for the Tesla Semi that indicates it might become more competitive because of the price of diesel.

So when prices are high, generally somebody somewhere is benefiting. Who is it, in this case?

The people benefiting from diesel prices being so high are the refineries, which a lot of people don’t think about much because they’re the middle person in this entire process. They take the crude oil and turn it into usable diesel for a pickup truck, a semi truck, or farming equipment. 

The refinery business is experiencing high demand right now, and there’s limited capacity to do this because of issues in Russia, Iran, and other places throughout the world. There’s really nowhere else to do this, and therefore they can charge higher prices. That means higher profits for the refineries.

All of this is shaping up to potentially mean a really ugly winter. One thing I think about a lot is that American consumers will accept a lot of pain. We had Covid — the inflation, and shortages of literally everything. Then we had the war in Ukraine, and prices went up again. 

People still keep spending money, even as we predict this one’s going to get bad. People go to the store and spend money, and maybe they gripe, but it’s not like we’re out in the streets. Do you think this coming diesel shock — imminent, in your words — is going to be different?

I’m not an economist, but there is an interesting phenomenon emerging in the economy where consumer sentiment is at rock bottom, but consumer spending is actually really strong. There’s a gap emerging between what people say they feel and what they’re actually doing — in this case, they’re still spending. 

Maybe it’s YOLO spending. They’re thinking they don’t have much going for them, so they’re just going to keep spending. I’ve experienced that a little bit, so I don’t blame anybody.

At the end of the day, the numbers matter a little bit more than what people say they feel. But I do think people are going to hit a breaking point because they simply cannot continue this level of spending if the underlying fundamentals of the economy start to collapse.

On most fronts, President Donald Trump has shown little concern for reducing Americans’ cost of living ahead of November’s midterms. 

Trump has refused to accept Iran’s ceasefire proposals, even as the conflict pushes fuel costs to new heights. And he’s declined to abandon his trade wars — with US adversaries and allies alike — even as tariffs nudge up Americans’ expenses. 

Yet there is one area where Trump has recently tried to lower consumer prices in an economically coherent way, and it’s been a political disaster.

In late August, the president lowered tariffs on up to 661 million pounds of imported lean beef trimmings, a key ingredient in hamburger meat.

This policy directly addressed a genuine problem facing US consumers: Ground beef prices were roughly 8 percent higher last month than they had been one year earlier. And unlike many of the White House’s other ideas for increasing affordability, the meat imports proposal comported with conventional economic logic: If you reduce input costs for meat processors, they’ll be able to sell beef at lower prices. 

By endorsing this reasoning, the Trump administration was implicitly rebuking its own theory of trade economics (which holds that tariffs increase costs for foreign companies, not American consumers). In doing so, Trump also put voters’ material interests — and economists’ conventional wisdom — above his ideological hangups.

And he’s paying dearly for it. 

Instead of appeasing cash-strapped shoppers, the beef imports policy has mostly just aggravated (already aggrieved) agricultural firms. All across the farm belt, cattle ranchers are incensed by Trump aiding their foreign competition — after the president had already depressed their sales through tariffs and increased their costs via his Iran war and immigration policies. 

Cowpokes aren’t alone in resenting the White House’s affronts to agricultural interests. In dark red states like Kansas and Iowa, Democratic candidates have become highly competitive, while Republicans are racing to distance themselves from the president, in part by going after his beef plan directly.

Which raises the question: How and why did Trump’s plan for cheaper hamburgers go so wrong?

The answer partly concerns that measure’s particular flaws. But it also reflects broader problems with the administration’s governance, which now threaten to cost Republicans badly: A persistent failure to account for its policies’ economic consequences, a reliance on symbolic, last-minute fixes instead of far-sighted planning, and inattention to the material concerns of voters — even those as deeply conservative as cattle ranchers.

Trump’s cheap beef policy is small potatoes

As a political matter, the fundamental flaw with Trump’s beef import policy is simple: Its benefits to individual consumers are minuscule while its costs to certain cattle ranchers are substantial.

Trump’s tariff exemption has a tiny impact on consumer prices for two reasons. First, it just doesn’t affect that much meat. Although 661 million pounds may sound like a lot, that adds up to only about 6.8 percent of America’s annual ground beef supply. And most of these imports go to restaurants and fast-food joints, since grocers tend to prefer fresh, domestic ground beef. 

Second, only a small fraction of beef importers’ savings is likely to pass through to consumers. When a meat processor sees the costs of imported beef fall, it will generally try to pocket as much of its savings as it can, perhaps passing a small chunk along to the distributors it contracts with.

The distributors will then try to retain as much of that small chunk as they can before passing a slimmer fraction of the initial savings along to retailers or restaurants, who will then try to do much the same before selling to customers. In this way, past USDA research has suggested that only about 19 percent of any decline in wholesale beef prices reaches consumers.

Combine this reality with the narrow scale of Trump’s tariff relief, and the consumer benefit becomes microscopic. According to the Purdue University economists Ken Foster and Bernhard Dalheimer, Trump’s policy will reduce wholesale ground beef prices by at most 1.41 percent. If only 19 percent of that decline passes through to consumers, as the USDA’s research suggests, then shoppers will pay just 0.27 percent less for ground beef. In other words, in the best-case scenario, Trump’s policy would knock about two cents off the price of a pound of hamburger meat. 

For context, that price has risen by $1.32 cents — or 23 percent — since Trump took office.

Why cattle country is beefing with the White House

Looking at these numbers, one might ask: So what are these ranchers complaining about? If Trump’s policy only lets in enough cheap foreign beef to cut prices by a couple cents, how much could it really hurt domestic cattle producers?

It is true that the president’s tariff relief has not condemned cattle ranchers to penury. But it does hurt farmers more than it helps individual consumers for two reasons.

First, the impact is highly concentrated on certain cattle operations. The new imports soften demand for domestic cull cows — breeding females who’ve gotten old enough to be worth more dead than alive — because their meat tends to be low-fat. No ranch specializes in producing such cattle. But ranchers who happen to have older herds at the moment are more reliant on cull cow sales. 

Second, from the perspective of all ranchers, Trump’s policy sets a disconcerting precedent. To build a herd, ranchers must hold back young female cows today — passing up immediate earnings from selling their meat — so as to breed more future cattle, which won’t come to market for years. 

In effect, this means that ranchers must perennially sink money into bets on the trajectory of future beef prices. If there happens to be a hamburger glut when today’s calves become ripe for slaughter, then their investments could produce a shabby return. But this downside risk is typically offset by the potential for outsize gains: If beef prices soar three years from now, ranchers who rebuild their herds today will reap large profits.

Yet Trump policy threatens this upside: If the government makes a habit of letting in cheap foreign beef every time hamburger prices spike, then it will effectively lower the ceiling on domestic ranchers’ future profits. 

As Iowa Sen. Chuck Grassley, Kansas Sen. Jerry Moran, and dozens of other farm-state members of Congress put the point in a letter to Trump, “Cattle markets are cyclical, and ranchers use the upswings to prepare for the inevitable downturn.” The lawmakers therefore urge Trump to abandon any “intervention in the natural system” that might depress those upswings, so as not to “undermine the long-term viability of family-owned cattle operations throughout the supply chain.”

Trump’s unintentional war on agriculture

For these reasons, Trump’s beef tariff exemption was inevitably going to attract more complaints from ranchers than applause for consumers. What’s made it especially politically toxic, however, is the broader policy context it emerged from. 

Simply put, when your foreign policy costs the average US household more than $500 in excess gasoline expenses — while your tariffs cost them $1,100 in elevated consumer prices — they’re probably not going to thank you for making a pound of ground beef two cents cheaper.

Meanwhile, ranchers may have been a bit less apoplectic about heightened foreign competition if Trump hadn’t already been squeezing them with his broader agenda.

Thanks largely to the president’s trade war with China, American beef exports fell 12 percent in 2025, as Beijing erected retaliatory barriers to US meat. This year, Trump’s trade war with Canada has further cut American farmers’ sales.

And while their foreign markets have been shrinking, US agricultural firms’ expenses have been skyrocketing due to the Iran War.

Farmers in general — and ranchers in particular — rely heavily on diesel fuel to power tractors, trucks, trailers, and myriad other agricultural machines. Thus, as the Iran War has throttled the global energy supply and triggered a record-breaking surge in diesel prices, US farmers have been hammered. 

In July 2026, American farms were paying 22 percent more for fuel than when Trump took office. Over the same period, fertilizer costs have risen by 8 percent, due to the Iran War’s impact on natural gas prices. 

If this weren’t enough cause for farmbelt consternation, Trump’s immigration enforcement surge has provided an additional source of pain. Ranchers, like other farmers, rely heavily on the labor of immigrants, some of whom are undocumented. For this reason, US agricultural businesses have been wary of Trump’s approach to interior enforcement, despite their deeply conservative bent. 

Bizarrely, even as the administration has tried to placate rancher anger in recent weeks, it also launched a series of ICE raids targeted at beef-producing areas. These actions have triggered “work force disruptions” at feed yards and dairies — as immigrant workers were intimidated into staying home — according to a joint statement from the Cattlemen Associations for Texas, Oklahoma, and Kansas. The groups allege that thousands of cattle shipments have been delayed as a result, saddling producers with millions in lost revenue and unexpected costs.

Ironically, by engineering these ICE-induced disruptions, the White House also plausibly raised beef prices for consumers, undermining its own politically costly push for hamburger affordability.

Republicans are losing ground in the countryside

The political fallout from Trump’s beef policies — and broader affronts to agricultural interests — has been profound. 

Trump won Kansas in 2024 by more than 16 points. Yet Democratic minister Adam Hamilton is polling just 1.5 points behind sitting Republican Sen. Roger Marshall, according to a RealClearPolitics polling average. 

By itself, this could be chalked up to some peculiar, race-specific factor. But in Iowa, a farm belt state that went for Trump by 13 points in 2024, Democrats are also mounting improbably competitive campaigns. Democratic state representative Josh Turek leads Republican Rep. Ashley Hinson (who is publicly concerned about the beef issue) by half a point in polls of Iowa’s Senate race, while Democratic state lawmaker Lindsay James narrowly leads the House race in Iowa’s Second District, which Trump won by 10 points in 2024.

Meanwhile, in heavily agricultural Nebraska — where Trump beat Kamala Harris by more than 20 points — Democrat-aligned independent Senate candidate Dan Osborn is attacking Trump’s beef imports policy and running neck-and-neck with incumbent Republican Sen. Pete Ricketts. And in the Cornhusker State’s First District, which backed Trump by 13 points two years ago, Democrat Chris Backenmeyer is polling about two points behind the Republican incumbent Mike Flood.

Critically, Democrats’ gains in these jurisdictions don’t merely reflect the nationwide backlash against Trump and his party. The Democratic Party margin over Republicans in the national generic ballot is now about 9 points — a 10.5-point improvement over Harris’s showing in 2024. In the Iowa, Kansas, and Nebraska Senate races, Democrats are outperforming Harris’s showing by 13 points or more. 

Now, it’s conceivable that Democrats’ apparent strength in the farm belt could reflect some kind of systematic polling error. For example, if pollsters were undersampling less-educated rural white voters, then that might inflate Democratic candidates’ numbers more in agricultural states than in the country as a whole. 

But Republicans in the farm belt seem to think the rural backlash is real — and driven, at least partly, by Trump’s unintentional assaults on the agricultural sector.

A little bit of free trade goes a short way

Ultimately, the lesson of Trump’s ground beef fiasco isn’t that the president should have just ignored voters’ demands for cheaper meat — or economists’ warnings about tariffs’ negative impacts on affordability.

Had Trump prioritized low prices — and heeded basic economics — from day one, ranchers might still have ended up bitter about facing heightened foreign competition. But in a world without Trump’s trade conflicts or Iran War, such cattle producers would enjoy lower costs and larger foreign markets — and might therefore be more willing to take higher beef imports in stride. 

Meanwhile, if the prices of fuel and consumer goods were broadly lower, shoppers might be more appreciative of Trump’s economic governance. To be sure, even in that scenario, Americans probably wouldn’t notice the impact of loosening constraints on foreign lean beef trimmings. But if the administration were replicating such affordability measures across all policy fronts, the consequent savings could eventually add up to something large enough to attract voters’ notice and approval. 

In our world, however, Trump’s half-hearted embrace of ground-beef globalism was too little, too late. And in November, his party’s farm-belt candidates might pay the price.