• Latest
  • Trending
  • All

What’s behind Trump’s affordability drive?

November 13, 2025

Ice cream: How the big firms innovate to stay ahead

August 15, 2026

Temporary disposable barbecue ban over wildfire risk

August 15, 2026

Why tech bosses keep sharing their manifestos about AI

August 15, 2026

European Athletics Championships 2026: Keely Hodgkinson takes 800m silver behind Swiss rival Audrey Werro

August 15, 2026

Electric vehicle sales targets could be cut after pressure from car makers

August 14, 2026

Business Daily – Taking Stock: The cost of heatwaves

August 14, 2026

Major oil slick washes up on Iran coast after Hormuz ship strike

August 14, 2026

Rare breeding bat found roosting near South Yorkshire reservoir

August 14, 2026

Killer who will not say where wife's body is to stay in prison

August 14, 2026

Amy Hunt: Can getting glammed up really improve your performance?

August 14, 2026

Arrests and road closed over suspected abduction in East Lothian

August 14, 2026

Tân mawr ger Llanymddyfri yn gorfodi nifer o bobl i adael eu tai

August 14, 2026
News
  • Login
  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Saturday, August 15, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Australia v Bangladesh: Steve Smith benefits from reprieve but tourists dominate day one of first Test

    Builders unearth €9m gold loot sealed in walls of Belgian property

    Chad’s Succès Masra: Former prime minister given state pardon

    Japan: Record rain in Chiba kills eight as thousands stranded at Narita Airport

    Engine parts smashed Ryanair window that man’s head was sucked out of, report says

    Stolen Matisse artworks recovered by police in Brazil

    Israeli settlers besieging Palestinian families in West Bank village

    Concern grows over conditions on USS Abraham Lincoln

    Australian army whistleblower released on parole after more than two years in jail

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Temporary disposable barbecue ban over wildfire risk

    European Athletics Championships 2026: Keely Hodgkinson takes 800m silver behind Swiss rival Audrey Werro

    Killer who will not say where wife's body is to stay in prison

    Arrests and road closed over suspected abduction in East Lothian

    Tân mawr ger Llanymddyfri yn gorfodi nifer o bobl i adael eu tai

    Ardoyne: Police defend response to north Belfast incidents

    'Welcome to one of the most bizarre by-elections in recent history'

    European Athletics Championships 2026: Amy Hunt wins 200m gold as Dina Asher-Smith claims bronze

    'Releasing my son's killer early would be a slap in the face'

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Ice cream: How the big firms innovate to stay ahead

    Electric vehicle sales targets could be cut after pressure from car makers

    Business Daily – Taking Stock: The cost of heatwaves

    US says dozens of countries helped China dodge Trump’s tariffs

    RBSI announces around 50 job cuts in Jersey

    UK economy grows but experts warn of challenging months ahead

    Twitch users can now block Amazon from using their content to train AI

    Burnham warned Iran war could hit UK growth next year

    First wave of ‘pounds for pylons’ energy discount sites revealed

  • Tech
  • Entertainment & Arts

    Meghan hits red carpet at Power of Women in Hollywood

    Margot Robbie unable to speak at Saltburn premiere

    Barbra Streisand: Siri can now pronounce my name

    Wes Anderson’s The Grand Budapest Hotel inspires cinema’s look

    Taylor Swift/ Travis Kelce romance reaches White House

    The Killers booed at Georgia concert after inviting Russian fan on stage

    Watch: Memorable moments from Parkinson's star-studded show

    Tom Jones: Neighbour surprised to find singer in flat below

    Black Country Folk Festival showcases local musicians

    Watch: Australians set new world record with Tina Turner dance

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Business Economy

What’s behind Trump’s affordability drive?

November 13, 2025
in Economy
8 min read
236 17
0
493
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Anthony ZurcherNorth America correspondent

Getty Images US President Donald Trump holds up a board that announces tariffs on other nationsGetty Images

Trump has floated the idea of payments for Americans based on tariff revenue

Facing growing public pessimism about his handling of the economy, US President Donald Trump has fired off a flurry of proposals to address consumer concerns.

Trump previously downplayed concerns about cost of living, insisting the outlook had improved during his nine months in office. He said affordability was a “new word”, and a “con job” by Democrats.

But he has focused on the issue with some urgency since his Republican Party’s poor performance in last week’s off-year elections across a handful of states.

He is again proposing an idea to give most Americans a $2,000 (£1,500) “subsidy”.

In reality the payments would operate more like a rebate for federal revenue generated by his tariffs on foreign imports.

The rest of the tariff revenue, he has said, would go to reducing the federal budget deficit.

According to economists, however, the tariff revenue isn’t nearly enough to cover the $2,000 rebate plan, even with the most generous assumptions and a narrow definition of those with incomes to qualify.

“If we take something like a cut-off of $100,000 a year in income, the minimum cost would be about $300bn, which would absorb all of the tariff revenue that’s been taken in so far and would require some deficit financing,” says Erica York, vice-president of tax policy at the non-partisan Tax Foundation.

What’s more, according to Ms York, the tariff refunds might end up being counterproductive by driving up prices as more money is pushed into the American economy. Covid-era stimulus payments may have created a similar dynamic, albeit in a larger scale.

“It would give large sums of money to households who are more likely to consume that than save it,” she said. “So we would have more dollars chasing goods in the economy.”

On Sunday, Treasury Secretary Scott Bessent seemed to downplay the possibility of such payments, saying that the revenue gains from the tariffs would be reflected in lower tax rates paid by Americas next year under the provisions of Trump’s 2025 “Big, Beautiful Bill” spending package, which Congress passed in July.

In last week’s elections, when Democrats notched up a string of victories, exit polls indicated the economy once again led all issues as the subject of concern for American voters.

Zohran Mamdani made affordability the key to his successful campaign for New York City mayor, as did Abigail Spanberger in Virginia and Mikie Sherrill in New Jersey with their winning runs for governor.

The exit poll results match recent opinion surveys that have suggested the public is souring on Trump’s handling of the economy and his inability, in their view, to follow through on campaign promises to lower costs for American consumers.

Another of Trump’s ideas involves promoting 50-year mortgages – an alternative to the 30-year mortgages that are standard for American home purchases.

The president has touted the extended payment schedule as a way to make home ownership easier for Americans.

Many in his own party, however, view it as a boon for lenders who will collect bigger fees and more interest.

“I don’t like 50-year mortgages as the solution to the housing affordability crisis,” Republican congresswoman Marjorie Taylor Greene of Georgia wrote on X.

“It will ultimately reward banks, mortgage lenders and home builders while people pay far more in interest over time and die before they ever pay off their home.”

Trump appears to have floated this idea without consulting senior White House advisers – a reflection of his willingness to move quickly on new ideas, but with the risk of giving his advisers little time to offer input.

Trump has also suggested taking government health insurance subsidies that will expire at the end of the year – which Democrats have unsuccessfully fought to extend during the 43-day government shutdown – and turning them into direct cash payments to consumers.

During an interview with Fox News, the president said this would allow American consumers to be more like “entrepreneurs” and “go out and negotiate their own insurance”.

All of these proposals would likely require congressional implementation, which is far from guaranteed with narrow Republican majorities in both chambers.

Trump has broached other, more modest proposals for reducing costs, such as ordering a federal investigation into beef prices and reaching an agreement with pharmaceutical manufacturers to lower the price of obesity drugs for uninsured buyers.

“It feels right now they’re just throwing all sorts of ideas out there to test them to see if they sound good,” says Ms York.

Trump’s electoral success – his ability to challenge long-held conservative orthodoxy and overcome seemingly formidable public concerns – demonstrate his well-tuned political instincts.

When he has sensed vulnerability in the past, he’s frequently used his political rallies and public appearances to sound out new ideas and gauge popular support.

But this is harder to do from the confines of the Oval Office, which is why the White House is discussing whether he should travel the country to give speeches on the economy, according to CNN.

Some of Trump’s other actions risk undermining his attempts at recalibrating his policies to reflect a darkening public mood.

For instance, Trump continues to insist that prices are dropping. In some cases – such as eggs and dairy products – he’s right.

But in others – those aforementioned beef, as well as coffee and electricity – costs are on the rise.

The president has repeatedly noted that the price of a Thanksgiving meal at Walmart is less than last year.

But he doesn’t mention that the retail chain’s dinner package this season contains half as many items and a smaller turkey.

All the while, his administration has fought in court to end food aid during the government shutdown, and the president has relentlessly touted the multi-billion-dollar renovations he’s overseeing to the White House.

Four years ago, Joe Biden’s White House was insisting that the economy was strong even as post-Covid consumer costs spiralled higher.

For the next three years of his administration, the Democratic president and his aides pointed to economic indicators and data in vain, as the public’s mood remained dark.

At 3%, inflation under Trump is still way below the 9.1% rate it peaked at under Biden, which was the worst cost-of-living crunch for decades.

Trump effectively exploited this disconnect between the Democratic leadership in Washington and American voters’ sentiment during his 2024 presidential campaign.

Now, however, Trump finds himself facing similar circumstances, as Republicans seek to avoid a similar fate in the elections to come.

Additional reporting by Tom Edgington, BBC Verify

A thin, grey banner promoting the US Politics Unspun newsletter. On the right, there is an image of the Capitol Building against a background of vertical red, grey and blue stripes. The banner reads: "The newsletter that cuts through the noise.”

Follow the twists and turns of Trump’s second term with North America correspondent Anthony Zurcher’s weekly US Politics Unspun newsletter. Readers in the UK can sign up here. Those outside the UK can sign up here.



Source link

Tags: affordabilitydriveTrumpsWhats

Related Posts

Business Daily – Taking Stock: The cost of heatwaves

August 14, 2026
0

Available for over a yearHow is climate change reshaping the global economy? Rahul Tandon is joined by Carsten Brzeski...

UK economy grows but experts warn of challenging months ahead

August 13, 2026
0

Summer sun and sports fixtures helped the UK economy grow between April and June, according to official data, but...

Burnham warned Iran war could hit UK growth next year

August 12, 2026
0

Andy Burnham has been warned that the UK economy could barely grow next year if disruption in the Strait...

  • Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

    677 shares
    Share 271 Tweet 169
  • Belgian footballer arrested in cocaine investigation

    533 shares
    Share 213 Tweet 133
  • Next to raise prices to help pay for rising wage costs

    532 shares
    Share 213 Tweet 133
  • South Wales Police officers injured, one arrested

    525 shares
    Share 210 Tweet 131
  • Charities to get £15m fund to save surplus farm food

    516 shares
    Share 206 Tweet 129
  • Trending
  • Comments
  • Latest

Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

January 16, 2025

Belgian footballer arrested in cocaine investigation

January 27, 2025

Next to raise prices to help pay for rising wage costs

January 7, 2025

World Cup 2022: TikTok brings football fever to millions of fans

0

UK economy will get worse before it gets better, warns chancellor

0

One of Central America’s most active volcanoes erupts again

0

Ice cream: How the big firms innovate to stay ahead

August 15, 2026

Temporary disposable barbecue ban over wildfire risk

August 15, 2026

Why tech bosses keep sharing their manifestos about AI

August 15, 2026

Categories

Business

Ice cream: How the big firms innovate to stay ahead

August 15, 2026
0

I'm at the research and development centre of the world's biggest publicly listed ice-cream maker, Magnum. Near Bedford in...

Read more

Temporary disposable barbecue ban over wildfire risk

August 15, 2026
News

© 2023 GODJ - NEWS CORP - news.godj.com.

Explore NEWS.GODJ.COM

  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

© 2023 GODJ - NEWS CORP - news.godj.com.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.