To any parents who bought this for their kids for Christmas and are running into this problem - the solution is candle wax!
Simply apply a thin layer of wax to any surface that rubs in the steering assembly (underside of the handlebars, front fork spindle, inside the hole the spindle goes through, etc.).
I was a little skeptical given the apparently unsuccessful petroleum jelly suggestion, but gave it a shot anyway, as I've used candle wax to lubricate wood in the past.
Not sure how long the effects will last, but it works great so far!
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