Trump's Tariffs to Hit Low-Income Americans, Again

With views of current finances among the poorest Americans already near the lowest in 14 years, tariffs are set to add more pressure by making many everyday items even pricier.

Low-income households, who spend a larger share of their budgets on goods than the wealthy and tend to favor cheaper imports, will bear the brunt of the hit. Economists from Bank of America and BNP Paribas expect the February consumer price index report due Wednesday to show early signs of the impact from tariffs — in particular the additional levies on items like furnishings, clothes and electronics coming from China.

Most of the impact on goods prices will be felt in the months to come — especially necessities like groceries, gasoline and electricity — from levies on imports from Canada, Mexico and China that are already in effect and those expected in the coming weeks. Retailers like Target Corp. and Best Buy Co. are warning of higher prices due to tariffs. That’s helping push long-term inflation expectations to an almost 30-year high.

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