Trump’s Tariff Hikes Could Push 1 Million Americans Into Poverty, Study Warns
Analysis by The Budget Lab shows Donald Trump’s steep new tariffs — the sharpest in nearly 100 years — could increase U.S. poverty.
Researcher John Ricco emphasized: “Tariffs are a tax on American families. Because tariffs are a tax on goods and services, instead of income, they hit harder on people who spend a higher percentage of income than they save.”
Under current policies, poverty could rise by 650,000 people in 2026, including 150,000 children, lifting the poverty rate from 12% to 12.2%.
Without tariffs, the rate would remain near 10.4%, but tariffs could push it up to 10.7% — putting nearly 1 million Americans at risk of slipping into poverty.
