If you’re already feeling the pinch from rising costs, here’s some tough news: President Trump’s tariffs are likely to hit lower-income Americans the hardest. Essentials like food, energy, and auto parts are most affected, and for families barely making ends meet, this could mean serious financial stress.

Experts point out that lower-income households tend to spend a larger chunk of their income on everyday items—think groceries and furniture—rather than things like tuition or services untouched by tariffs. This means they’ll feel the impact more directly. Economic research suggests these tariffs could wipe out 2.7% of the income for the bottom 20% of earners. That’s a big deal if you’re living paycheck to paycheck.

For comparison, the top 20% of earners would lose just 1.2% of their income, and the wealthiest 1% would only see a 0.6% dip. The gap is striking and highlights how these policies affect different income groups unequally.

The timing couldn’t be worse. Many families are already dealing with higher living costs, dwindling savings, and growing debt. Add tariffs to the mix, and it’s a recipe for financial strain. For example, credit card debt is rising, with more people only making minimum payments—a sign of financial stress.

And it’s not just consumers feeling the heat. Retaliatory tariffs from China could lead to job losses in manufacturing and agriculture, particularly in states that supported Trump in the 2024 election. Higher prices might also slow down consumer spending, which could ripple through the economy.

As one industry leader put it, these tariffs are “counterproductive.” When essentials cost more, people have less to spend on other things—like shoes or clothes. In the end, it’s a cycle that leaves many Americans worse off.

So, while tariffs might aim to protect certain industries, the broader impact could be far-reaching, especially for those already struggling to keep up.