Tariffs may drive hundreds of thousands into poverty, economists warn [View all]
Source: Scripps News
Posted 9:32 AM, Sep 13, 2025
The latest measure of consumer inflation shows prices are rising, and according to a Yale University analysis, increased costs from tariffs implemented by President Donald Trump could push thousands of Americans into poverty.
The Yale Budget Lab estimates that new 2025 tariffs could increase the number of Americans living in poverty by 650,000 to 875,000, depending on the method used to measure poverty.
The analysis assumes that incomes from jobs will remain steady despite higher tariffs. It also accounts for government programs, such as Social Security, that adjust payments based on inflation. Yale economists say the current U.S. tariff rate is 17.4%, the highest since 1935. The report projects that the average U.S. household will lose about $2,300 a year because of tariffs.
Tariffs are taxes charged to companies importing products into the United States. The rate varies depending on the country of origin and the type of product. While some companies tried to absorb the cost of tariffs early in Trump’s presidency, more now say those costs will ultimately be passed on to consumers.
Read more: https://www.scrippsnews.com/life/money/tariffs-may-drive-hundreds-of-thousands-into-poverty-economists-warn
Link to The Yale Budget Lab REPORT - State of U.S. Tariffs: September 4, 2025
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