New studies show President Trump's
tariffs will hurt low-income Americans more than the rich. According to the
Institute on Taxation and Economic Policy, in 2026, the poorest 20% of U.S.
households (earning less than $29,000) will see a tax hike equal to 6.2% of
their income. In contrast, the top 1% (earning over $915,000) will only see a
1.7% rise. Economists warn that tariffs raise prices on everyday items like
food and clothing, hitting low-income families the hardest. Yale’s Budget Lab
found the burden on lower-income groups is about 2.5 times greater than that on
higher earners. Treasury Secretary Scott Bessent said tariffs might cause a
“one-time price adjustment” but promised tax cuts are coming to help working
families.
Trump’s current tariffs are
wide-reaching. A 10% tariff is placed on most imports, with Mexico and Canada
facing 25% tariffs on select goods. Chinese products are hit even harder with a
145% tariff. Specific items like steel, aluminum, and cars carry a 25% duty.
Retailers are already raising prices, showing that tariffs are not just
abstract policies, but they are affecting daily life. As the White House
explores new trade deals and exemptions, the real question remains: Will future
policies help fix the growing burden on American consumers? What do you think?
Are tariffs helping or hurting the economy?
source:
https://www.cnbc.com/2025/04/25/trump-tariffs-taxes-poor-rich.html
1 comment:
You’re right these tariffs end up hurting low income Americans the most. Prices on essentials like food and clothes are rising, and that hits hardest for families already struggling. Meanwhile the wealthy barely feel it which doesn’t seem fair. Even with talk of future tax cuts people are feeling the impact now. It’s hard to see how this helps the economy in the long run.
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