From CNBC: 2025-04-25 12:47:00

President Donald Trump’s tariffs would disproportionately affect the poorest U.S. households over the short term, according to a new analysis. Taxes for the poorest 20% would rise about four times more than those in the top 1%, if current tariff policies continue. Economists expect consumers to pay higher prices as a result.

Researchers at the Heritage Foundation stated that tariffs are essentially taxes on Americans by another name. Low-income households would be hit hardest by tariff-related price increases on essential goods like food and clothing. Some retailers have already raised costs in response to Trump’s tariffs, according to recent analyses.

A Yale Budget Lab analysis found that Trump’s tariffs are regressive, meaning they disproportionately impact lower-income households. The short-term tax burden of tariffs is about 2.5 times greater for those at the bottom. Treasury Secretary Scott Bessent suggested that tariffs may lead to a one-time price adjustment for consumers.

It remains unclear how current tariff policies may change in the future. The White House has hinted at potential trade deals with certain nations and exemptions for specific products. Trump has imposed varying tariffs on imports from different countries, with China facing some of the highest duties at 145% on many goods.

Read more: Trump tariffs will hurt lower income Americans more than the rich: study