Trump Declares National Energy Emergency, Signs Alaska Executive Order

The president reiterated that energy has played a substantial role in inflation.

Former President and Republican presidential candidate Donald Trump gestures as he speaks during a campaign rally at Van Andel Arena in Grand Rapids, Mich., on Nov. 5, 2024. Kamil Krzaczynski/AFP via Getty Images

Within hours of returning to the White House, President Donald Trump signed a “national energy emergency” declaration and a corresponding slate of policy directives and actions designed to animate his “Unleash American Energy” agenda.

The executive order would enable the United States to accelerate oil and gas production by encouraging energy exploration and production on federal lands, cutting red tape and regulations, and eliminating the electric vehicle mandate.

The national energy emergency was invoked under the National Emergencies Act, extending Trump’s emergency powers. It orders the heads of federal departments and agencies to find emergency authorities to bolster production and possibly issue emergency fuel waivers to permit the year-round sale of gasoline containing high ethanol volumes.

“That’s a big one,” Trump said to reporters at the White House. “That means you can do whatever you have to do to get out of that problem. And we do have that kind of an emergency.”

A separate executive order explicitly targets Alaska’s abundance of natural resources.

According to “Unleashing Alaska’s Extraordinary Resource Potential,” the president will make it U.S. policy to enhance energy development and production on federal and state lands within the state. This will include expediting the permitting and leasing of energy and natural resource projects and prioritizing the development of Alaska’s liquefied natural gas (LNG) activities.

Alaska Gov. Mike Dunleavy requested in November 2024 to expand fossil fuel development in Alaska’s 23 million-acre National Petroleum Reserve and 19.6 million-acre Arctic National Wildlife Refuge to “make both Alaska and America great again.”

The newly-inaugurated president will direct the Department of Interior to restore oil and gas leasing availability to 13,000 acres of the National Petroleum Reserve and adhere to federal law in expanding Arctic National Wildlife Refuge leasing, reversing President Joe Biden’s orders that reversed Trump’s first-term orders.

Trump reiterated that energy has played a substantial role in inflation.

“The biggest thing and factor for inflation is energy,” Trump said. “They screwed up my energy policies, and then they went back to it. They hurt it really badly, and then they went back to it, and they started drilling more.”

“We’re going to make a lot of money from energy.”

A White House official told reporters on a press call that national security and global competitiveness will be the core themes of the president’s energy agenda.

“Our ability to produce domestic American energy is so crucial that we can generate the electricity and power that’s needed to stay at the global forefront of technology,” the official said.

The U.S. currently produces about 13.5 million barrels per day, outpacing Russia and Saudi Arabia. Economists and industry officials have said that whether energy companies expand production depends on market conditions and prices.

White House officials did not provide a specific oil price target but noted that increased domestic production will eventually bring down prices.

West Texas Intermediate (WTI), a U.S. benchmark for oil prices, is trading at around $76 per barrel, higher than the $53 when Trump left office the first time. Additionally, the average price for a gallon of gasoline is $3.13, up from $2.39 four years ago, according to the American Automobile Association.

Trump, in his inaugural address, vowed to fill the Strategic Petroleum Reserve (SPR) “right to the top.”

Following Russia’s invasion of Ukraine that helped send oil prices rocketing, Biden sold more than 180 million barrels of crude oil, or 40 percent, from the SPR.

Since hitting a bottom in July 2023, the previous administration gradually refilled the nation’s reserves by approximately 47 million barrels, touching 394 million barrels, according to the Energy Information Administration.

It has a maximum capacity of about 700 million barrels.

On the inflation front, Trump also signed an inflation memorandum that will put together a whole-of-government approach to combating high prices.

The presidential memorandum, titled “Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis,” will direct heads of all executive departments and agencies to offer “emergency price relief” applicable to the law. These include policies like abolishing administrative expenses and rent-seeking practices that raise health care costs and eliminating requirements that add to the costs of home appliances.

The ‘America First Trade Policy’

Trump issued a broad trade memorandum that will order federal departments, such as Commerce, Homeland Security, and Treasury, to study and assess unfair trade relationships and currency policies with other countries, especially Canada, Mexico, and China.

In his inauguration address, Trump vowed to “overhaul” the nation’s trade system.

“I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he said.

Trump did not impose new levies on other countries, though he said his administration could return to his tariff plans later.

“We’re not ready for that yet,” Trump said.

The United States could slap 25 percent tariffs on Canada and Mexico on Feb. 1 because of their border policies, Trump told reporters. He said the United States may also slap additional levies on China if Beijing does not permit a TikTok divestment deal.

“We’re going to make a lot of money from tariffs,” the president said.

“You put a universal tariff on anybody doing business in the United States because they’re coming in, and they’re stealing our wealth, they’re stealing our jobs, they’re stealing our companies. They’re hurting our companies.”

During his 2024 presidential campaign, Trump had pledged sweeping tariffs. He proposed 10-20 percent levies on all U.S. imports and 60-100 percent on Chinese goods entering the United States. Shortly after winning the presidential contest in November, he threatened to slap 25 percent tariffs on Canada and Mexico over drug trafficking and illegal immigration into the United States.

Trump also warned he would impose tariffs on countries participating in anti-dollar efforts.

When asked by a reporter about his stance on BRICS, a 10-nation coalition led by Brazil, Russia, India, China, and South Africa, Trump said they would also face universal tariffs.

“They were looking to do a number in the United States. If they do that, they won’t be happy about what’s going to happen to universal tariffs,” he stated.

The trade memorandum also orders the Treasury to work with Commerce and Homeland Security to look into “designing, building, and implementing an External Revenue Service (ERS) to collect tariffs, duties, and other foreign trade-related revenues.”

Trump announced on Truth Social that Jan. 20 would be the launch date of the new agency to collect tariffs, duties, and other revenue from foreign services. It is unclear whether this will conflict with the U.S. Customs and Border Protection, which already fulfills these tasks.

“We will begin charging those that make money off of us with Trade, and they will start paying, finally, their fair share,” Trump wrote. “January 20, 2025, will be the birth date of the External Revenue Service.”