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Indonesia News Portal for Traders | Financial & Business Updates

28 January 2026 04:29  |

Trump to Iowa: Selling "Affordability," But Minnesota Issues Heat Up

US President Donald Trump arrived in Iowa on Tuesday (January 27th), with a clear mission: to re-establish support in the Midwest, which will be a crucial battleground ahead of the November election. But his message about the economy and "affordability" is threatened by a political storm in neighboring Minnesota.

In Minnesota, the situation escalated after federal immigration agents shot and killed 37-year-old US citizen Alex Pretti during a protest in Minneapolis on Saturday. The incident sparked large demonstrations and demands for an independent investigation. It also marked the second time in the same month that a US citizen was shot dead by immigration officers in the city—even though Trump has deployed thousands of armed agents.

The problem is, Iowa itself is not in a "quiet" state. The state is the largest producer of corn, pork, and ethanol in the US. But in rural areas, complaints about the cost of living are mixed with more tangible concerns: weak commodity prices, while the costs of fertilizer, seeds, farm equipment, and tools are rising. Added to this is uncertainty about the direction of biofuel policy and trade relations with China.

Trump has won Iowa in the last three presidential elections, but some of his most loyal supporters are now struggling financially. Lance Lillibridge, a 56-year-old corn and cattle farmer, said he would attend Trump's event despite the current downturn. He admitted to being hit by the trade war and rising input costs, and even hoped the government would prepare another large aid package for farmers because his "cash flow is so bad."

The Trump team is expected to emphasize government support for agriculture and renewable energy, while framing his economic agenda as an effort to lower the prices of food, fuel, and household necessities. However, public sentiment data suggests the trend is uphill: a Reuters/Ipsos survey completed Sunday found that only 30% of respondents approved of Trump's handling of the cost of living, while 59% disapproved.

Pressure is also coming from the biofuel industry. The government has not finalized its 2026 biofuel blending quota (RVO), the renewable fuel credit (45Z) tax guidelines are not finalized, and efforts to sell E15 gasoline year-round remain stalled. The impact is being felt hard in Iowa: 2025 biodiesel production is down to 244 million gallons, a 31% drop from 2024. Industry players are calling 2025 a major blow—as unclear tax policies and quotas leave many plants “scrabbling on their hands” while awaiting certainty from Washington.

Source: Newsmaker.id

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