Tariffs don’t just raise prices — they could also push more people into poverty, according to a new report from The Budget Lab at Yale.
Transcript:
Tariffs don’t just raise prices – they could also push more people into poverty.
A Yale Budget Lab study shows that President Trump’s tariff hikes could push 875,000 people into poverty by 2026 – including 375,000 kids.
Here’s why: tariffs act like a hidden tax. They shrink what households can spend, either by raising prices or, in some cases, cutting incomes – economists call it a hit to “real income.”
And there’s a ripple effect: the poverty line is inflation-adjusted, so when tariffs push prices up but incomes don’t keep pace, more families fall below it.
Because spending patterns vary across income groups, low-income households feel it hardest.
Bottom line: tariffs may protect some industries, but they could also leave nearly a million American families further behind.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Caroline Woods with TheStreet.
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