Story perspectives

Trump's Tariffs Set to Slash Incomes for Most Americans

9/11/2025

Summary

Story summary

A study by the Center for American Progress indicates that Trump's tariffs and the One Big Beautiful Bill Act will reduce incomes for most Americans by 2027, benefiting only the top 1%.
The poorest 20% may lose $1,650, while middle-income households could see a $1,300 decrease due to tariff-related costs.
The OBBBA may increase deficits by $3.4 trillion over the next decade, despite tariffs potentially raising revenues by $2.9 trillion.
Economic growth has only marginally improved from government spending, which is expected to decline with additional tax cuts.
Small businesses in Georgia express significant concerns over tariffs, with some facing rates as high as 170%.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs on imports, leading to a 30% decline in international trade and exacerbating the Great Depression, which saw unemployment exceed 20%. Today, similar protectionist measures under Trump's tariffs threaten to disadvantage low and middle-income households, potentially resulting in income losses of $1,650 and $1,300, echoing the economic fallout of the 1930s.

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Story summary

A study by the Center for American Progress indicates that Trump's tariffs and the One Big Beautiful Bill Act will reduce incomes for most Americans by 2027, benefiting only the top 1%.
The poorest 20% may lose $1,650, while middle-income households could see a $1,300 decrease due to tariff-related costs.
The OBBBA may increase deficits by $3.4 trillion over the next decade, despite tariffs potentially raising revenues by $2.9 trillion.
Economic growth has only marginally improved from government spending, which is expected to decline with additional tax cuts.
Small businesses in Georgia express significant concerns over tariffs, with some facing rates as high as 170%.

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