Hey fam! A fresh report from Yale's Budget Lab just dropped some eye-opening stats on the impact of US tariff hikes. Turns out, by 2025, these extra fees on imported goods could push between 650,000 and 875,000 more Americans below the poverty line 😳💸. Here's the scoop:
- Two poverty yardsticks: the Official Poverty Measure (basic cash income threshold) and the Supplemental Poverty Measure (adds things like food aid and regional costs). Depending on which one you pick, poverty climbs by 0.2 to 0.3 percent of the US population.
- Why it matters: Tariffs work like indirect taxes that drive up prices on everything from smartphones to groceries, but wages don't rise at the same pace. More price hikes mean more families falling under the poverty threshold.
The average import tax rate just hit over 18 percent—the highest level since 1933! 😮 That rate hike squeezes real household income, especially for lower earners who spend a bigger chunk of their pay on everyday stuff.
Even if this sounds US-centric, the takeaway is global: trade policies ripple through supply chains and can hit pockets far from home. For anyone in South Asia or Southeast Asia ordering the latest gadgets online or following global market trends, tariff moves are a reminder that policy changes can show up in your budget.
Bottom line: As trade tensions heat up, keep an eye on how policies shape prices and living costs—because in our interconnected world, no region is immune 🌏✨.
Reference(s):
cgtn.com
