White House officials are scrambling to mitigate the economic fallout of the war with Iran, as hopes for a quick resolution fade. President Trump has backed suspending the federal gas tax, which would cut 18 cents per gallon off prices currently averaging over $4.50 nationwide.
The idea, once seen as unnecessary, is gaining urgency as options run low. A White House source said Trump needs a visible consumer relief move now, with prices up 50% since the war began.
Consumer sentiment has hit a record low, and inflation surged to 3.8% in April. Six in ten Americans say higher gas prices have hurt their finances, according to a Reuters/Ipsos poll. Trump's economic approval rating has dropped to 30%.
Republicans fear voter backlash could cost them control of Congress in November's midterm elections. Officials are analyzing whether the national average price could reach $5 per gallon, with seven states already surpassing that mark.
