Tariffs set to hit low-income families the hardest for three key reasons

Stock markets have been the first place the impact of the tariffs are felt with trillions wiped off wealth in the matter of days but experts warn the prices for basic goods will soon rise if the tariffs remain

The tariffs are set to hit low-income families the hardest as economists warn groceries, clothes and electronics will likely see a jump in price.

US President Donald Trump followed through on his tariff threats this week by declaring a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States.

“It is going to affect everything in the economy,” said Josh Stillwagon, an associate professor of economics and chair of the Economics Division at Babson College. “There’s this immediate price increase that’s going to be passed on to consumers here, basically as soon as the retailers have to buy new product.”

Experts warn that these tariffs could make inequities all the worse. Low-income families in particular will feel the cost rises of key necessities, like food and energy.

Low-income households often “spend a larger share of their income on essential goods — whether it’s food or other basic products ... (like) soap or toothpaste,” said Gustavo Flores-Macías, a professor of government and public policy at Cornell University whose research focuses on economic development. Because of this, he said, “even relatively small price increases” will be felt much worse.

In announcing what he has called reciprocal tariffs, Trump was fulfilling a key campaign promise by raising U.S. taxes on foreign goods to narrow the gap with the tariffs the White House says other countries unfairly impose on U.S. products.

Trump’s higher rates would hit foreign entities that sell more goods to the United States than they buy. But economists don’t share Trump’s enthusiasm for tariffs since they’re a tax on importers that usually get passed on to consumers.

It’s possible, however, that the reciprocal tariffs could bring other countries to the table and get them to lower their own import taxes.

Prices on perishable groceries will likely increase first, because supermarket inventories need to be replenished more frequently.

But a range of other items — like electronics, household appliances, clothing and footwear — could also be affected in the coming weeks and months.

“Annual losses for households at the bottom of the income distribution are estimated to be $980 under the April 2 policy alone,” according to John Breyault, vice president of public policy, telecom and fraud at the National Consumers League, who cited an analysis from the Budget Lab at Yale.

He said that tariffs will disproportionately affect clothing and textiles, with clothes prices predicted to rise 17%.