U.S. President Donald Trump has acknowledged the financial strain many Americans are feeling due to the rising gas prices, yet his proposal to temporarily halt the federal fuel tax may not have the significant impact he and drivers desire.
On Monday, Trump expressed his desire for a temporary pause on the federal gas tax, a move that necessitates congressional approval. The current U.S. federal tax on a gallon of gasoline stands at 18.4 cents, only a fraction of the average national pump price of $4.52 US per gallon, as reported by travel services agency AAA. Since the commencement of the U.S.-Israel conflict with Iran in late February, the national average price has surged by 50%, translating to a $1.54 US increase per gallon over a mere 10-week period.
Even Trump concedes that slashing the tax will have a marginal effect on prices. He remarked on Monday, “It’s a small percentage, but it’s, you know, it’s still money.” As gas prices have climbed, Trump’s approval ratings have declined. With the midterm elections approaching, the White House is under pressure to address inflation.
Recent polling by Ipsos Public Affairs for Reuters reveals that over three-quarters of respondents attribute the gas price surge to Trump. Alec Tyson, the lead pollster at Ipsos in Washington, notes that the price hike is impacting public perception of the president. However, he points out that while suspending the gas tax is a popular notion, it may not substantially boost Trump’s economic standing, given the broader concerns Americans have regarding the economy and cost of living.
In a survey conducted by Ipsos among a nationally representative sample of 4,557 U.S. adults, including 3,577 registered voters, it was found that many blame Trump for the high gas prices. Oz Mangrum, a hotel manager in Washington, D.C., expressed hope that Trump could address the issue promptly, as the escalating fuel costs are prompting him to consider alternative transportation options.
Following Trump’s call to halt the gas tax, two Republican lawmakers—one in the House and one in the Senate—announced plans to introduce legislation to enact this measure. When asked about the duration of the proposed tax pause, Trump responded, “Until it’s appropriate.” Suspending the tax could cost the U.S. Treasury approximately $3.5 billion per month, according to the Committee for a Responsible Federal Budget.
The U.S. federal gas tax, set at 18.4 cents per gallon since 1993, remains unchanged, as does the diesel tax at 24.4 cents per gallon. Meanwhile, in Canada, Prime Minister Mark Carney’s government recently suspended the federal excise tax on gasoline (10 cents per litre) and diesel (four cents per litre) until Labour Day, equivalent to approximately 27.6 cents US per gallon at the current exchange rate.
