Trump tariffs would hit lower-income Americans hardest

Data: Yale Budget Lab. Chart: Axios VisualsTariff pain is not shared equally: The less money you make, the more President Trump's proposed higher taxes on imports will hurt.Why it matters: Tariffs are another blow to lower-income earners already struggling with higher prices.By the numbers: The lowest income households could see their disposable income fall by as much as 5.5%, in a scenario of 20% across-the-board tariffs where other countries retaliate with levies of their own, per an analysis from the Yale Budget Lab.For the highest-income households, that drop is just 2.1%.Zoom out: That does not mean middle-class or wealthy Americans are going to escape unscathed. In pure dollar terms, the tariff burden on the highest earners is, well, higher. They make more money and spend more money.For households in the middle, the big tariffs would cost an average of $3,800 per household, per year. For those in the top tenth, it averages $9,500 per household, per the Yale Budget Lab.In the long term, the authors write, tariff effects start hitting the wealthy, too, as prices on assets decline.Tariff inequality fades, but only because it gets worse for folks who hold stocks, bonds and real estate.The big picture: Tariffs are just one part of Trump's agenda, a White House official told Axios. Other levers like deregulation and government spending cuts should keep inflation in check and the economy growing, they said.Trump campaigned on the promise of lower prices, but inflation has gone up recently.The bottom line: Ouch.

Data: Yale Budget Lab. Chart: Axios VisualsTariff pain is not shared equally: The less money you make, the more President Trump's proposed higher taxes on imports will hurt.Why it matters: Tariffs are another blow to lower-income earners already struggling with higher prices.

By the numbers: The lowest income households could see their disposable income fall by as much as 5.5%, in a scenario of 20% across-the-board tariffs where other countries retaliate with levies of their own, per an analysis from the Yale Budget Lab.For the highest-income households, that drop is just 2.

1%.Zoom out: That does not mean middle-class or wealthy Americans are going to escape unscathed. In pure dollar terms, the tariff burden on the highest earners is, well, higher.

They make more money and spend more money.For households in the middle, the big tariffs would cost an average of $3,800 per household, per year. For those in the top tenth, it averages $9,500 per household, per the Yale Budget Lab.

In the long term, the authors write, tariff effects start hitting the wealthy, too, as prices on assets decline.Tariff inequality fades, but only because it gets worse for folks who hold stocks, bonds and real estate.The big picture: Tariffs are just one part of Trump's agenda, a White House official told Axios.

Other levers like deregulation and government spending cuts should keep inflation in check and the economy growing, they said.Trump campaigned on the promise of lower prices, but inflation has gone up recently.The bottom line: Ouch.

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