Trump’s Lavish Xi Welcome Clashes with Voter Focus on Cost of Living

Key points

• Trump’s approval rating fell to 32%, the lowest of his career, according to a Reuters/Ipsos poll released Sept. 21.
• Gas prices averaged $4.49 per gallon on Sept. 25, up from $2.87 in late January, while diesel hit a record $6.50 per gallon.
• Four Senate Republicans supported a resolution to end the war with Iran on Sept. 24, though the measure failed.
• The Federal Reserve raised interest rates on Sept. 16, the first increase since July 2023, despite Trump’s demands for lower rates.
• The US-China summit extended a tariff truce by two months but saw no major progress on trade imbalances or Taiwan.

Background

This development follows earlier reports of voter skepticism regarding Trump’s proposed $5,000 'dividend' plan, which relies on tariff revenue to fund potential checks for citizens if Republicans maintain control of Congress. Recent polls have consistently shown that economic anxiety, particularly regarding groceries and healthcare, is the top priority for voters in the upcoming midterms, overshadowing foreign policy initiatives.

How outlets are covering it

USA Today emphasizes the disconnect between Trump’s foreign policy focus and voter priorities, highlighting how high fuel costs and the Iran war are driving Republican dissent. In contrast, the Council on Foreign Relations (CFR) argues that the US-China summit, while lacking substantive breakthroughs, achieved necessary strategic stability. CFR notes that both leaders appear comfortable with the status quo, prioritizing comity over resolving difficult issues like semiconductor exports or Taiwan. USA Today frames the lavish welcome as a political misstep given domestic economic pain, while CFR views the lack of major conflict as a positive outcome in a volatile geopolitical landscape.

Why it matters

The divergence between presidential priorities and voter concerns threatens the Republican Party’s midterm prospects. As economic pain points like gas prices and interest rates intensify, the administration’s focus on foreign affairs may alienate key swing voters and rural supporters. The fracturing within the Republican party, evidenced by candidates distancing themselves from the Iran war, signals potential internal instability that could impact the Nov. 3 elections.

What to watch

Trump is expected to campaign heavily in the month before the midterms, focusing on competitive races in states like Alaska and Texas. The Federal Reserve’s interest rate policy will likely remain a point of contention, with Trump continuing to demand lower rates despite inflationary pressures. The US-China relationship will likely remain in a state of managed stability, with ongoing negotiations on trade and technology, but no major breakthroughs are expected in the near term.