An economist warned that President Donald Trump is aiming the same weapon the U.S. used against Iran at America’s own economy.
University of Michigan economist Justin Wolfers, founder of the Platypus Economics newsletter and podcast, sounded the alarm during a Wednesday episode of “The Trump Report” with host Maddie Hale. The pair were discussing Trump’s claim that he is open to banning diesel exports as U.S. diesel prices hit record highs.
Wolfers pointed out that the Trump administration had waged what he called an “economic D-Day” against Tehran by choking off its energy sales.
“The U.S. hates Iran. So, in order to destroy the Iranian economy, they had economic D-Day in which they’ve tried to prevent Iran from exporting energy to get money,” Wolfers explained. “The president has just voluntarily said he wants to get the U.S. to stop exporting energy to get money. He’s applying the same economic policy to the United States as to Iran. That’s kind of bonkers, right?”
Hale admitted she “didn’t actually think of it like that.”
Wolfers said the idea runs “upside down” and “back to front” from Trump’s own trade agenda.
“The president came to power, and he’s imposed tariffs on imports because he’s worried about the balance of payments or he’s worried about the trade deficit,” Wolfers said. “So he wants America to be exporting more and importing less. What is he suggesting? There’s not even a word in my textbook for a tariff on exports.”
Wolfers added, “It’s the opposite of what the president thinks and what the president thinks was mixed up to start with.”
He said a ban “would solve a narrow problem and be an absolutely absurd economic solution.” Consumers would get cheaper diesel, Wolfers said, but “anyone whose 401(k) owns stock in an energy company, that energy company’s now losing a lot of revenue.”
The refining and drilling regions in Texas “are going to be somewhat depressed,” Wolfers warned.
Wolfers also noted there is little to stop such a move because “it’s so widely understood it’s a dumb move that no one ever bothered signing anything to say don’t do it.”
He also questioned the timing. High gas prices angered “moms and dads and regular voters,” he said, yet “the president never once thought about restricting exports of gasoline.” Diesel, by contrast, is used by “farmers and truckers” and by “corporations, big agriculture, transportation companies.”
Wolfers said the proposal signals to allies that the U.S. can’t be trusted on basic commerce.
“The point is we are so unreliable we’re not even pursuing our self-interest,” he said.
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