Summary
A study by Yale University's Budget Lab suggests that U.S. tariffs might push between 650,000 and 875,000 Americans into poverty next year. These price increases can reduce household spending power, leading to fewer sales, job cuts, and increased poverty rates. The research uses different poverty measures to estimate impacts, with the official and supplemental measures showing varying poverty increases.
Key Facts
- Yale University's Budget Lab analyzed the impact of U.S. tariffs on poverty rates.
- The analysis predicts 650,000 to 875,000 Americans could fall into poverty next year due to tariffs.
- Tariffs are taxes on imports, which can lead to higher consumer prices.
- Higher prices might reduce people's buying power and lead to job losses.
- The study finds grocery workers, retail workers, and other blue-collar jobs as the most vulnerable.
- Exact projections depend on the poverty measure used: the Official Poverty Measure or the Supplemental Poverty Measure.
- The Bipartisan Policy Center estimates tariffs have generated $163 billion in revenue for the federal government.
- The study uses data from the Census Bureau and economic projections to estimate these effects.
