Shipping repeats at the port of Seattle on April 16, 2025.
David Ryder / Bloomberg via Getty Images
Price perceived By President Donald Trump, during his second term, the poorest American household is richer than the richest in the short term, according to a new analysis.
Prices are a tax that importers pay on foreign goods. Economists expect consumers To support at least part of this tax burden In the form of higher prices, according to the way in which companies transmit costs.
In 2026, taxes for the poorest 20% of households get up about four times more that those of the higher 1%, if the current pricing policies should remain in place. These are results in accordance with an analysis published Wednesday by the Institute on Taxation and Economic Policy.
For the 20% lower households – which will have income below $ 29,000 in 2026 – prices will impose a tax increase equal to 6.2% of their income that year, on average, according to ITEP analysis.
Meanwhile, those that are 1% the most important, with an income of more than $ 915,000 per year, would see their taxes increase by 1.7% compared to their income, revealed on average ITEP.
Economists analyze the financial impact of the policy in relation to household income because it illustrates how their disposable income – and their quality of life – are assigned.
Taxes by “another name”
“The prices are only taxes on the Americans by another name,” are looking for researchers at the Heritage Foundation, a conservative reflection group, wrote In 2017, during Trump's first term.
“(They) increase the price of food and clothes, which constitute a larger share of the budget of a low-income household,” they wrote, adding: “In fact, the reduction in prices could be the largest families with low income reduction income.”
In the meantime, there is already evidence that Some retailers increase costs.
A recent analysis By the Yale Budget LAB, also found that Trump prices are a “regressive” policy, which means that they hurt those at the bottom than the summit.
More personal finances:
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Consumers make financial changes in response to prices
Can tariff income replace income tax?
The short -term tax burden of the prices is approximately 2.5 times higher than those below, revealed Yale's analysis. He examined the rates and trade reprisals until April 15.
“Low -income consumers will be picked up more by prices,” said Ernie Tedeschi, director of the Yale Budget Economy LAB and former chief economist of the White House's economic advisers during the Biden administration.
The Treasury Secretary, Scott Bessent, said the prices could lead to a “unique price adjustment” for consumers. But he also associated trade policy as part of a broader economic program of the White House which includes a future legislative set of tax reductions.
“We are also working on the tax bill and for the Americans who work, I think that the tax reduction will be much more,” Bessent said April 2.
We also do not know how the current tariff policy could change. The White House reported that trade agreements with certain nations and exemptions for certain products may be in sight.
Trump imposed a 10% rate on imports from most American business partners. Mexico and Canada face 25% samples from a slice of goods, and many Chinese products face 145% import rights. Specific products are also faced with prices, such as a 25% function on aluminum, steel and cars.
