Trump's Tariffs Branded a 'Cruel Tax': Nearly 900k Americans, Many of Them Children, to Be Plunged Into Poverty

As new tariffs take effect, Americans are faced with rising prices on everyday items like groceries.

KEY POINTS

• Yale Study says US tariff rate now at 17.4%, highest since 1935.
• Tariffs raise prices on essentials like clothing, food and vehicles, hitting poor families hardest.
• Trump team debunks the claim, saying there's decline in wealth inequality for the first time in decades.

US President Donald Trump's tariff policies could plunge nearly a million Americans into poverty if they remain in place, according to a bombshell study by Yale's Budget Lab released this week. The researchers found that the current level of import taxes, which disproportionately affect lower-income households, will sharply erode purchasing power and widen economic disparities.