U.S. President Donald Trump has acknowledged the financial strain many Americans are facing due to the rising gas prices. However, his proposal to temporarily halt the federal fuel tax may not have the desired impact for both him and drivers. Trump expressed his desire on Monday for a temporary pause on the federal gas tax, which would require Congressional approval.
The current U.S. federal tax on a gallon of gasoline is 18.4 cents, a fraction of the current national average price of $4.52 US per gallon at the pumps. This national average has surged by 50% since the onset of the U.S.-Israel conflict with Iran in late February, resulting in a $1.54 US per gallon increase in just 10 weeks.
Even Trump concedes that cutting the tax would only marginally reduce the price. He mentioned 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, a concerning trend with the upcoming midterm elections that will determine the Republicans’ control of Congress for the remainder of Trump’s term.
Recent polling by Ipsos Public Affairs for Reuters revealed that over three-quarters of respondents attribute the spike in gas prices to Trump. Alec Tyson, the lead pollster for Ipsos, emphasized that the increase in gas prices significantly impacts people’s perception of the president. However, he noted that gas prices are just one element contributing to Trump’s dwindling approval ratings on economic and cost-of-living issues, where Americans have broader concerns.
Following Trump’s call to suspend the gas tax, two Republican lawmakers—one in the House and one in the Senate—announced plans to introduce bills to enact this proposal. When asked about the duration of the tax pause, Trump responded, “Until it’s appropriate.” Suspending the gas tax would cost the U.S. Treasury approximately $3.5 billion per month, as estimated by the Committee for a Responsible Federal Budget.
The U.S. federal tax on gasoline and diesel has remained unchanged since 1993, standing at 18.4 cents per gallon and 24.4 cents per gallon, respectively. In contrast, Prime Minister Mark Carney’s government in Canada recently suspended the federal excise tax on gasoline (10 cents per litre) and diesel (four cents per litre) until Labour Day. At the current exchange rate, 10 cents Cdn per litre equals approximately 27.6 cents US per gallon.
