President Donald Trump’s tariff plan has had far-reaching and devastating effects on poor and working-class people in the United States. The tariffs, which were imposed across the board despite being partially reversed, will raise prices on everyday goods, hurt low-wage workers in developing countries, and exacerbate economic instability.
The impact of the tariffs on low-income households is significant. According to a study by the Budget Lab at Yale University, the average American household will pay around $3,800 due to the tariffs. However, this burden will be disproportionately felt by lower-income households, who spend a larger share of their income on essential goods.
Furthermore, the tariffs have raised concerns about stagflation – a combination of high inflation, rising unemployment, and stagnant economic growth. Economists warn that a recession is still possible, with low-income families likely to bear the brunt if one occurs.
While some argue that Trump’s tariffs will benefit small businesses on “Main Street,” this is a misguided notion. In reality, the tariffs are hurting Wall Street and other industries, while poor and working-class people will struggle to make ends meet.
There are a few potential avenues for change, including Congress passing legislation to limit the president’s authority to impose tariffs and federal courts striking down the measures. However, these solutions rely on Trump changing his mind or the courts intervening, which is uncertain.
Ultimately, Trump’s tariff policy shows a clear disregard for the well-being of low-income Americans, prioritizing tax hikes for the poor over economic growth and stability.
Source: https://www.vox.com/policy/408353/trump-tariffs-trade-war-poverty-price-hikes