US President Donald Trump is trying to shift the economic narrative as rising fuel and living costs threaten Republican prospects ahead of midterm elections.
During a campaign-style visit to Nevada and Arizona, Trump promoted his tax and immigration agenda, including measures aimed at hourly and hospitality workers. However, surging prices for fuel, food, housing, and insurance have unsettled voters and weakened the party’s political momentum, reports Reuters.
“The cost of living is going to trump anything — no pun intended — over any small change in tax returns,” said David Damore, a political science professor at the University of Nevada, Las Vegas.
Republican strategists told Reuters the White House is struggling to control the affordability debate, overshadowing gains from tax reforms and a previously resilient economy.
Trump struck an optimistic tone, telling supporters in Las Vegas, “Every single American and every income level, there’s more money in their pockets this week because of the Republican tax policies.”
“And we got to win the midterms. If we don’t, these policies are going to be taken away from you,” he added.
Advisers hope a potential deal with Iran could reopen the Strait of Hormuz and ease economic pressure, though analysts warn supply disruptions may keep fuel prices high in the near term.
Higher energy costs are fuelling broader inflation, posing risks for Republicans facing a difficult electoral map. Democrats are favoured to take control of the House, while Senate races in key states are tightening, according to election analysts.
Trump’s approval rating has also slipped, falling to 36 per cent in a late-March Reuters/Ipsos poll.
The administration has attempted to counter price pressures by releasing oil from reserves, easing sanctions, and adjusting shipping rules. However, global oil prices remain above $90 per barrel, limiting immediate relief options.
The president has acknowledged uncertainty, at times warning of prolonged price pressures while also predicting a sharp decline once geopolitical tensions ease.
“Even when you have a great president, they tend to lose the midterms,” Trump said. “So we’re going to try turning it around.”
Republicans are also banking on provisions in the 2025 tax law, including a “no tax on tips” policy allowing workers to deduct up to $25,000 in tip income, though benefits phase out for higher earners.
More than 53 million taxpayers claimed at least one tax cut this season, with average refunds exceeding $3,400, according to the White House.
Despite these measures, analysts warn that persistent inflation and voter frustration over living costs could dominate the political landscape in the months ahead.
