Brace yourselves! New U.S. tariff hikes could push between 650,000 and 875,000 more Americans under the poverty line next year, a fresh report from Yale's Budget Lab warns.
Researchers looked at two key ways the Census Bureau measures poverty: the Official Poverty Measure, which tracks cash income against an inflation-adjusted threshold, and the Supplemental Poverty Measure, which adds living costs and extra resources into the mix.
Tariffs act like indirect taxes. When import taxes rise, prices climb or incomes get squeezed — so families feel it at the grocery store and beyond. As prices increase without matching wage gains, more households slip below that inflation-adjusted poverty threshold. 😕
The average tax rate on imports has jumped above 18% — the highest level since 1933. That spike translates into steeper bills for electronics, clothing, and everyday items.
For policymakers and entrepreneurs, the data highlights an uneven economic toll: trade policy can ripple through markets and directly affect real household budgets. As the debate over tariffs heats up in Washington, these figures remind us that behind every policy decision are real families feeling the pinch. 💡
Reference(s):
cgtn.com
