The surge in gas prices following Iran’s decision to close the Strait of Hormuz dismantled one of the key claims that gave Trump the presidency: that he would slay inflation.
Rising inflation means that real wages are now, on average, declining.
Moody’s Mark Zandi estimates that by June the rising cost of energy had eaten up the higher refunds taxpayers got from Trump’s One Big Beautiful Bill Act of 2025.
The accelerated reduction of subsidies for solar power development in his One Big Beautiful Bill, added to his efforts to stop investment in wind farms, are driving up the prices of renewable energy, even as demand for power from AI datacenters soars.
In case higher gas and power prices aren’t enough, Trump has also raised healthcare costs.
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Enrollment in health insurance policies under the Affordable Care Act could decline by five to six million this year, due to the abrupt ending of government subsidies that led to a 58% increase in premiums, on average.
Trump’s broad punitive policies also include cuts to food assistance and health insurance for the poor under Medicaid, complemented with specific swipes against narrower constituencies.
Take farmers, among Trump’s most loyal supporters. In 2024, he won 433 of the nation’s 444 farming-dependent counties.
Still, his trade war against China contributed to a $17bn decline in exports to their main Asian market last year, while his hostility towards Canada led to a $1bn decline in farm exports to the US’s northern neighbor.
