Millions of Americans below the poverty line … for this reason!

A recent analysis of the budget laboratory at Yale University revealed that the comprehensive customs tariff system imposed by President Donald Trump on American imports reinstalls global trade and increases government customs revenues, but at the same time threatens to introduce more Americans in the circle of poverty.

The study, published on Tuesday, showed that Trump’s tariff increases may lead to an increase in the number of Americans who live in poverty by 875,000 people in 2026, including 375,000 additional children. These estimates are based on the official poverty measure that calculates income before taxes. The research indicates that low -income families are more affected by customs duties, because a greater part of their income is spent on living needs compared to high -income families, and that these families often buy imported products whose prices are most affected by fees. “Customs duties are a tax on American families, because it affects goods and services directly and not on income,” said John Rico, assistant director of policy analysis at the Budget Laboratory. The laboratory is estimated that the poverty rate will increase from 10.4% to 10.7% after calculating the effect of Trump customs duties. The complementary poverty scale analysis, which takes into account government programs such as Countries, Children and Health Care, showed that customs duties will lead to a rise in poverty by 650 thousand people, including 150 thousand children, bringing the poverty rate to 12.2%. The American Statistical Office stated that about 36 million Americans lived in poverty at the end of last year, while the poverty rate was 10.6% after a slight decrease of 0.4 points Celsius. Despite the decline in inflation in the prices of producers by 0.1% between July and August, economists warn that this decrease may cover the pressures of high prices due to customs duties, which threatens the purchasing power of American families and affects the labor market by reducing profits or reducing employment. The analysis indicated that the average actual customs duties rate in the United States rose to 17.4%, which is the highest since 1935. The continued application of the current fees, these burdens may continue on consumers, especially with the legal ambiguity surrounding the fees, as the Supreme Court agreed to listen to the arguments related to international customs duties, and its ruling may lead to the abolition of the vast majority of definitions if it is considered illegal, while the president retains other powers to keep some fees valid.