So, technically, the song is not intended to be a low-key gay song. Victor Willis, the Village People founder, lead singer, and the one who wrote the song, has said that the lyrics are not meant to be suggestive of a gay message as he is not gay. Rather, the song was meant to evoke a hopeful message to people like himself who grew up an urban youth and needed community as well as being open to all others. He did not intend the suggestive message that the gay community interpreted from it, but he was also happy they love the song.

So, the song occupies a sort of weird mixed space. It is whole-heartedly embraced by the gay community as an anthem for the LGBT and projects a positive welcoming message for young confused or lonely gay men, which was unintended but welcomed by the writer. It is also widely embraced by straight people as a fun poppy song with a kitschy dance that everyone knows. They play it in grade schools, they play it at weddings, they play it at roller rinks.

So the gay association is only one facet of the song. For those who have a problem with things associated with the gay community, that means they either amplify that association and vilify it, or they downplay or ignore the association and just think of it as the catchy song with the easy dance. Or people accept that associate as well and just enjoy the song and dance.

That being said, Trump might be the kind of idiot that actually is completely oblivious to the association with the gay community altogether. Who knows.