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Biggest victims of new tariffs won’t necessarily be Mexicans

In this June 3, 2019, photo, shoppers enter and exit a Walmart in Tempe, Ariz. Executives at Walmart and dollar-store chains, which import much of their merchandise and serve many low-income customers, have warned that tariffs could lead to higher prices for consumers. (AP Photo/Matt York)
In this June 3, 2019, photo, shoppers enter and exit a Walmart in Tempe, Ariz. Executives at Walmart and dollar-store chains, which import much of their merchandise and serve many low-income customers, have warned that tariffs could lead to higher prices for consumers. (AP Photo/Matt York) In this June 3, 2019, photo, shoppers enter and exit a Walmart in Tempe, Ariz. Executives at Walmart and dollar-store chains, which import much of their merchandise and serve many low-income customers, have warned that tariffs could lead to higher prices for consumers. (AP Photo/Matt York)

By Associated Press 5 min read

The biggest victims of President Donald Trump’s tariffs won’t necessarily be Mexicans or Chinese or young urbanites who will have to pay more for avocado toast.

The people likely to pay the steepest price for Trump’s attempts to bend Mexico and China to his will are poor Americans, who already live close to the financial edge and could have to pay more for everyday purchases.

For many low-income households, tariffs “are a tax on their consumption, and by raising the cost of their consumption, they will likely have to cut back,” said Jay Shambaugh, a senior fellow at the Brookings Institution.

The president last week announced plans to impose a 5% tax on Mexican imports unless that country halts all unauthorized border crossings into the United States. The tariffs would rachet up to 25% in the coming months if Mexico fails to stop the flow of immigrants and asylum-seekers.

The threat of higher tariffs follows a decision in May to hike tariffs to 25% from 10% on Chinese imports, a move designed to increase pressure on China to agree to more favorable trading terms with the United States.