economy
January 31, 2026
Trump's tariffs are hurting working class
The United States has just come through a period of high inflation. Over the four-year period of Joe Biden’s presidency, every single dollar Americans held in their bank accounts or stuffed under their mattresses lost roughly one-fifth of its value. So it is understandable that when Americans look at the tariff problem, inflation is top of mind.
TL;DR
- Tariffs increase the prices of imported goods.
- Tariffs can also raise prices on U.S.-manufactured goods that use imported raw materials.
- Economic evidence indicates tariffs raise prices and reduce available goods and services.
- This leads to lower income, reduced employment, and lower economic output.
- The tariff burden falls disproportionately on people with lower incomes.
- Current tariffs are projected to reduce American households' after-tax incomes.
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