Story perspectives

Yale Study: Trump Tariffs Could Raise Poverty by 875,000

9/11/2025

Summary

Story summary

A Yale study predicts Trump's tariffs may increase poverty by 875,000 Americans by 2026, including 375,000 children.
The U.S. average effective tariff rate has reached 17.4%, the highest since 1935, raising economic concerns.
The White House asserts Trump's policies have aided working-class households, despite rising poverty.
Wholesale inflation decreased by 0.1% in August, but economists caution about a slowing economy.
The Supreme Court will review Trump's tariffs, potentially reshaping the trade landscape.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930 raised U.S. tariffs significantly, contributing to a 25% decline in international trade and exacerbating the Great Depression, which saw unemployment soar to 25%. Today, similar protectionist measures under Trump's administration, with an effective tariff rate of 17.4%, threaten to increase poverty for 875,000 Americans, highlighting the ongoing debate over trade policy's impact on economic stability.

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Story summary

A Yale study predicts Trump's tariffs may increase poverty by 875,000 Americans by 2026, including 375,000 children.
The U.S. average effective tariff rate has reached 17.4%, the highest since 1935, raising economic concerns.
The White House asserts Trump's policies have aided working-class households, despite rising poverty.
Wholesale inflation decreased by 0.1% in August, but economists caution about a slowing economy.
The Supreme Court will review Trump's tariffs, potentially reshaping the trade landscape.

1 / 2