Lovely Speaks to China Daily About the Impact of President Trump’s Tariffs
April 14, 2025
China Daily
Economists warn that President Trump's tariffs disproportionately burden lower-income Americans by increasing the cost of goods they rely on, while wealthier individuals benefit from associated tax cuts.
Experts argue this results in a significant upward redistribution of wealth, intensifying already stark economic inequality.
Studies conducted by the Tax Foundation and the Budget Lab at Yale show low-income households could face hundreds to thousands in added yearly expenses, while the richest 1% gain substantial financial advantages.
The new taxes “take a larger share of income from poorer households than richer households,” Mary Lovely, professor emerita of economics, tells China Daily.
In another China Daily article, “US consumers brace for tariffs,” Lovely says, “In some sectors, tariffs create no new jobs in the U.S., as trade is diverted to third countries rather than inducing new domestic production.”
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