We Export 48 Million Barrels of Diesel per Month, Why Import from Russia?

Despite the lead chart, there is a convoluted reason to import some diesel. But there is also a much better solution.

The Regional Disconnect (East Coast Bottleneck)

• The Problem: Most U.S. diesel exports leave from the Gulf Coast.
• The Bottleneck: Moving Gulf diesel to the Northeast faces severe limits.
  • The Jones Act: Restricts domestic shipping to U.S.-flagged vessels.
  • Pipeline Capacity: The Colonial Pipeline operates at maximum capacity.
• The Paradox: Shorter sea routes make foreign imports cheaper for New York.

Jones Act Diesel Stupidity

The Jones Act is the killer here.

The Jones Act—officially known as Section 27 of the Merchant Marine Act—was passed by Congress in early June 1920 and officially signed into law on June 5, 1920, by President Woodrow Wilson.

The primary purpose of the Jones Act was to promote US shipbuilding. It has failed miserably because US labor costs are too high.

Ironically, as a result of this sorry act, we import some diesel.

Also, the Jones Act makes domestic food so expensive to ship coastwise that it forces non-contiguous states and territories like Hawaii, Alaska, and Puerto Rico to buy foreign food instead of American food.

Direct Jones Act Agricultural Stupidity

• The Mandated Trade Diversion: Because the law outlaws using cheaper foreign vessels to move food from the U.S. mainland to Hawaii or Puerto Rico, it acts as a structural tariff on domestic trade.
• The Import Result: To avoid this “tax,” these regions legally import food from foreign countries like New Zealand, Ecuador, or Canada using foreign ships.

Now, how stupid is that?

Synopsis

• The deal is economically meaningless and will do nothing for farmers.
• The deal may save a few cents, if that, for the East coast, assuming we actually see imports.
• But the deal is illegal and will never fly if someone with standing challenges the deal in court.
• Trump does not care about illegalities. He pretends he is a king.
• If we killed the Jones Act, we would import less food and no diesel.

Trump Humiliated by Putin Within Hours of His Ceasefire Announcement

What Trump Does Best

Looking like a fool is what Trump does best. He cannot control himself. And it does not matter the subject.

If Trump wants something he announces it. Legalities and constitutionality do not matter.

Reciprocal tariffs, birthright citizenship, the SAVE Act and mail-in voting executive orders, flouting the Epstein Files Transparency Act (EFTA), tariff rebates, $5,000 vote-for-me bribes, are examples.

Trump views himself as a king. He wants dictatorial powers so he assumes them, no more no less.

Regarding diesel, Trump must love getting bitch-slapped by Putin because he keeps begging for more.

His stupid war and stupid tariffs are going to cost Republicans the Senate in the midterm elections.Cook Political shifts 3 Senate ratings towards Democrats.

Addendum

The Foreign Relations Committee reports Ranking Member Shaheen and Six Bipartisan Senators’ Statement on Legality of Imports of Russian Diesel Fuel

Today, U.S. Senators Jeanne Shaheen (D-NH), Ranking Member of the Senate Foreign Relations Committee, Susan Collins (R-ME), Richard Blumenthal (D-CT), Lisa Murkowski (R-AK), Ron Wyden (D-OR), Thom Tillis (R-NC) and John Curtis (R-UT) issued a statement regarding the legality of Russian diesel fuel imports to the United States.

“Congress explicitly banned Russian energy imports in 2022 to prevent American dollars from financing Putin’s brutal war against Ukraine. Congress was clear: the U.S. should not import oil from Russia until it ends its aggression against Ukraine and ceases threats against our NATO Allies.

“President Trump’s decision to allow Russian diesel imports to the U.S. runs directly counter to that law. The Administration has also failed to consult with Congress or submit any explanation to justify its decision as required by statute.

“The United States should not provide Putin with a financial lifeline while Russia continues to kill Ukrainian civilians. The Administration must immediately reverse course.”