Monday, April 28, 2025

Trump tariffs will hurt lower income Americans more than the rich

 

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:

Jason Quartson Jr. said...

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.