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Biden's Inflation Strategy May Alienate Support Base

US

Today has seen tentative steps towards two Biden administration moves to ease inflation. The first is a trip to Saudi Arabia to repair ties with the OPEC leader and the second is the easing of certain Trump-era China tariffs.

  • The moves have not yet been explicitly demarcated by the White House (the Saudi trip is to support Israel, China tariffs are being examined) but could displease progressives and labour groups, key pillars of the Democrat support base.
  • Senator Jeff Merkley (D-OR) has just spoken to NBC on both issues. On lifting China tariffs: “The President has to be very careful not to undermine those objectives by turning on kind of the opportunity to completely undermine American manufacturing.”
  • The Alliance for American Manufacturing tweeted: "President Biden *repeatedly* has said the U.S. is in a competition with China for the future of the 21st century. Lifting tariffs will hand the CCP a major (and wholly undeserved) victory in that competition. Oh, and it will do nothing to help inflation."
  • On a meeting with Saudi Crown Prince Mohammad Bin Salman Merkley said: “I hate to think of the moment when he has to shake MBS’s hand, because they're horrendous on human rights…We know he's going there for oil, but there's other really important human rights issues he needs to push hard on.”
  • Last week Rep Adam Schiff (D-CA) said Biden should not meet MBS: "This is someone who butchered an American resident."
  • Biden's approval continues to sink to new lows and if these two strategies fail to cool inflation then it may further damage the President's standing amongst crucial Democrat voting blocs.

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