By Jarrett Renshaw, Nandita Bose and Jacob Bogage
Washington — Trump administration officials are scrambling to contain the economic and political fallout of the war with Iran, three people familiar with the White House’s discussions told Reuters, as hopes for a quick resolution fade.
US President Donald Trump this week backed suspending the federal gas tax, a step that would knock 18c a gallon off motor fuel prices currently averaging more than $4.50 a gallon nationwide.
Once viewed by some White House aides as unnecessary, the idea is gaining urgency as officials run low on options to show they are tackling rising costs, according to people who spoke on condition of anonymity to discuss sensitive internal deliberations.
Within the White House, a consensus has emerged that with prices up 50% since the start of the war, Trump needs “a visible consumer relief move now”, one of the people said. Historically, $4-a-gallon (3.78l) petrol has been a level that triggers public backlash and economic anxiety.
