Shoppers browse through school supplies at a Walmart in Dallas on August 12. LM Otero/AP
As noted by CNN
The tariff policy implemented by the Trump administration continues to shape the economic landscape of the United States, highlighting the growing inequality between the rich and those with lower incomes.
Tariffs have raised costs for imports and raw materials, driving up prices of consumer goods and increasing operating costs for businesses. As a result, households face higher out-of-pocket costs for essential goods and services.
The Impact of Tariff Policy on Different Segments of the Population
Lower-income groups feel the main blow: they spend a larger share of their budget on food, housing, utilities, and medical needs. The wealthier segments have more diverse sources of income and assets, which provide them a certain buffer during periods of rising prices.
The U.S. economy is also facing supply chain disruptions and higher production costs in sectors such as the automotive industry, electronics, and furniture. The costs associated with such changes are often passed on to consumers in the form of higher prices.
Analysts warn that such a distribution of costs could reduce demand among the middle class and lead to a decrease in the number of jobs in sectors that rely on affordable demand. At the same time, higher-income earners are less sensitive to tariff shocks due to better budget adaptation and investment opportunities.
In the future, economists propose ways to mitigate the negative impact of tariffs through more targeted and temporary support mechanisms for the most vulnerable: targeted tax credits, worker support programs, and a more flexible trade policy to reduce the risk of increasing inequality and to ensure sustainable economic growth.
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